Unit 6 - Part 36 Offer

Question 1

What’s a part 36 offer?

Answer 1

It’s a formal settlement, where if one party refuses to accept a reasonable part 36 offer, and failed to obtain a more advantageous judgment than the part 36 offer, it will be financially penalised - R36.17

Question 2

What’s the aim of a part 36 offer?

Answer 2

encourage settlement between parties by imposing penalties for rejection of reasonable offers to settle.

Question 3

When can a part 36 offer be made?

Answer 3

Before, during and after proceedings and during appeal proceedings - r36.7 and 36.4.

Question 4

How can a part 36 offer be made?

Answer 4

By using the Form N244 or a letter

Question 5

what are the formalities for a Part 36 offer?

Answer 5

36. 5(1)
    - writing
    - clear that it is a part 36 offer
    - period of not less than 21 days if the offeree accepts this offer, the D will pay for the costs
    - whether the offer relates to the whole, part or certain issue of the claim
    - if the offer relates to a certain issue, state clearly what this issue is.
    - whether it takes account of any counterclaim

Question 6

What’s the relevant period?

Answer 6

21 days 36.5(1)(c)

Question 7

What happens if the offeree accepts the Part 36 offer within the relevant period?

Answer 7

D will pay for the costs under r36.13.

Question 8

How is the relevant period calculated?

Answer 8

When the offer is deemed to be served to the offeree or their legal rep - 36.7(2)

Question 9

If the offer is made close to the trial, when does the relevant period end?

Answer 9

36.3(g)

Period to the end or whatever period the court states as the end.

Question 10

Does the court know about the Part 36 offer?

Answer 10

No, till when the costs are assessed under Part 44.3

Question 11

How much should the part 36 offer be ?

Answer 11

36.4
If D made the offer to C - single sum including interest and it can’t be in instalments.
D must be willing to pay the whole amount within 14 days of the C accepting the offer.

Question 12

Can a part 36 offer be implicitly withdrawn?

Answer 12

NO

Question 13

How can a Part 36 offer be withdrawn?

Answer 13

Should be express withdrawal and should be done in writing.

Question 14

Does the permission of the court needed to withdraw a Part 36 offer?

Answer 14

Yes, if the Relevant period has not expired (r36.10).

Question 15

When a Part 36 offer be accepted?

Answer 15

Any time before the relevant period expires - C v D.

Question 16

How can a Part 36 offer be accepted?

Answer 16

Written notice should be provided to the offeror 36.11(1).

Question 17

What’s the effect of accepting a part 36 offer?

Answer 17

Term is stayed - 36.11(1)

If C accepted D’s Part 36 offer, D would need to pay within 14 days of C’s acceptance - 36.14(6).