Settlement Flashcards
What is required when parties settle before trial?
They must confirm the settlement in a consent order, often using a Tomlin order.
What is a Tomlin order?
A type of consent order that confirms a stay in proceedings and includes a schedule of payments.
What is a Part 36 offer?
A formal, written offer to settle a claim that is without prejudice and can be made by either party.
When can a Part 36 offer be made?
At any time during proceedings (except small claims) and even before proceedings are issued.
What must a Part 36 offer state?
It must be in writing, specify it is a Part 36 offer, and state a relevant period during which it cannot be withdrawn.
How long must the relevant period for a Part 36 offer be?
A minimum of 21 days.
Can a Part 36 offer be withdrawn?
Yes, unless the offeree has served a Notice of Acceptance.
How can a Part 36 offer be accepted?
Acceptance must be in writing and can occur anytime, even after the relevant period, if not withdrawn.
What happens if a claimant accepts a Part 36 offer within the relevant period?
They are entitled to their costs up to the date of acceptance.
What happens if a claimant accepts after the relevant period?
Costs are only available up to the end of the relevant period, not to the date of acceptance.
What are the consequences of rejecting a Part 36 offer?
If a claimant secures more than the offer, there’s no cost penalty. If less, they pay the defendant’s costs post-offer period.
What happens if a defendant rejects a claimant’s Part 36 offer?
If the claimant gets less than the offer, no effect on costs; if more, the defendant may owe interest and additional costs.
