Part 36 offers Flashcards
What does Part 36 of the CPR set out?
Financial consequences for accepting and not accepting offers to settle claims.
At what stage can Part 36 offers be made?
At any stage of proceedings, including before proceedings are issued.
Who can make a Part 36 offer?
Any party.
What is the main difference between Part 36 offers and Calderbank offers?
Calderbank offers cannot be referred to a judge until after trial and do not need to comply with Part 36.
What must a Part 36 offer be?
- In writing
- Clear that it is pursuant to Part 36
- Specify the relevant period within which D will be liable for C’s costs if accepted
- State whether it relates to the whole or part of the claim, and whether the counterclaim is taken account of
What form can be used for Part 36 offers?
Prescribed Form N242A.
What are the additional requirements for a valid Part 36 offer made by a defendant?
- must be an offer to pay a single sum of money
- must include an offer t pay all or part of the sum at a date no later than 14 days following the date of acceptance –> if not it won’t be treated as a P36 offer unless the offeree accepts the offer
When is a Part 36 Offer considered made?
When it is served on the offeree.
What happens if there is a pre-issue P36 offer?
- they have the usual consequences on acceptance after issue, or on judgment being given.
- the consequences are dependent on there being proceedings
When can the offeree seek clarification of the terms of the offer?
Within 7 days of service
Can an offer be withdrawn if it has already been accepted?
No.
What is required to withdraw a Part 36 offer if the trial has started?
The court’s permission.
What occurs if the relevant period for a Part 36 offer has expired and you want to withdraw the offer?
The offer can be withdrawn or terms changed without permission, or the offer can be automatically withdrawn if the terms state.
What must happen if a notice of withdrawal/change occurs before the relevant period has expired?
It will take effect at the end of the relevant period.
What happens if you want to withdraw a P36 offer within the relevant period but the other side accepts it?
- offeror can allow acceptance
- or apply to court for permission to withdraw the offer within 7 days of the notice of acceptance –> court may give permission if satisfied there has been a change of circumstances which makes permission in the interests of justice
How can a party accept a Part 36 offer?
By serving written notice of acceptance on the offeror. If the case has been issued, this must be filed at court.
What is the consequence of accepting a Part 36 offer?
The claim will be stayed and will not continue to trial.
What is the time frame for the defendant to pay the settlement amount after acceptance of a P36 offer?
14 days from acceptance unless otherwise agreed in writing.
What happens if the defendant does not pay the settlement amount within 14 days?
The claimant can enter judgment against the defendant.
What happens if the offer does not include a settlement sum?
The aggrieved party can apply to court to enforce the terms of the offer without the need to start seperate court proceedings
What are the cost consequences of acceptance within the relevant period?
The claimant is entitled to costs up to the date the notice of acceptance was served.
What are the cost consequences of acceptance outside the relevant period?
The court will determine liability for costs unless parties agree.
The usual order is:
- C is awarded costs until the end of the RP
- the offeree pays the offeror’s costs for the period from date of expiry of the RP to the date of acceptance
What happens if a settlement offer is made less than 21 days before trial?
The court must determine liability for costs unless the parties can agree
What occurs if the claimant accepts a Part 36 offer related to part of a claim?
Claimant will only be entitled to costs relating to the part of the claim contained in the offer unless the court considers otherwise.
