Revision Guide - Ch.17: Part 36 Offers to Settle Claim Flashcards
What is a Part 36 offer?
A formal offer to settle a claim.
It is without prejudice (can’t be referred to in court)
What is needed for the offer to be a Part 36 offer?
the offer must be:
i. in writing, and
ii. state that it is a Part 36 offer
iii. it must specify a period during which it cannot be withdrawn without court permission (a minimum of 21 days)
What can be done if a Part 36 offer is unclear?
The offeree can request a clarification within 7 days.
If the offeror doesn’t provide suitable clarification within 7 days, the offeree may apply to the court for an order requiring the offeror to clarify.
When can a Part 36 offer be withdrawn?
Can be withdrawn so long as the offeree has not served a notice of acceptance.
What happens if notice of withdrawal is served before the relevant period expires?
It takes effect upon expiry of the relevant period.
However, if the offeree serves a notice of acceptance before expiry of the relevant period, the acceptance is valid unless the offeror receives permission to change or withdraw the offer based on changed circumstances or the interests of justice.
How can an offer be accepted?
Only in writing
May a Part 36 offer be accepted after the relevant period has expired?
yes, if it hasn’t been withdrawn by the offeror.
When can a part 36 offer be accepted during trial?
Only with permission of the judge
What happens if a Part 36 offer is accepted within the relevant period?
The defendant will pay the costs of the claim to the point of acceptance.
The costs will be assessed on the standard basis (reasonable costs) if the parties cannot agree them.
What happens if a defendant accepts the claimant’s Part 36 offer after expiry of the relevant period?
The court will decide the liability for costs if the parties cannot agree
What happens if a claimant accepts a defendant’s Part 36 offer after expiry of the relevant period?
The defendant’s liability to pay the claimant’s costs runs only up to the end of the relevant period.
- 21 days after the offer was made.
What may happen if a party makes a Part 36 offer before issuance of proceedings and the offer is accepted?
The court may award the offeror the pre-issue costs that they incurred
What happens if the claimant rejects a part 36 offer and then secures an award greater than the amount in the defendant’s offer?
The offer has no effect on the costs that will be awarded
What happens if the claimant rejects the part 36 offer and then secures less than the defendant offered?
The defendant will usually be ordered to pay the claimant’s costs (on the standard basis) up to expiry of the relevant period.
The claimant will likely be ordered to pay the defendant’s costs (on the standard basis) incurred after expiry of the relevant period.
The defendant may also be awarded interest on the costs
What happens if the defendant rejects the part 36 offer and the claimant secures an award greater than the amount in their offer?
The defendant will likely be ordered to pay the interest on the entirety of the claim at an enhanced rate for the period after the time for acceptance expired.
Costs for this period will likely be assessed on the indemnity basis.
Additional damages of up to 10% of the first £500,000 in damages (and5% for amounts above) may also be available
