This is an extract of our Part 36 Prep Letter Ii document, which we sell as part of our Civil Litigation Notes collection written by the top tier of Cambridge And Oxilp And College Of Law students.
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Clithero Marshall 2 Bishops Row Rummidge RU4 9HQ
Hamblings Securities Limited 10 London Wall London EC2R 1RT 25 March 2014 Dear sir, Hamblings Securities Limited v Oscar Azevado: Claimant's Part 36 offer As discussed earlier, the claimant has made a Part 36 offer, the terms of which are set out in the attached letter dated 03/03/2014. I am writing to explain the implications of a Part 36 offer to help you decide whether or not to accept this offer. Part 36 is a provision in the Civil Procedure Rules (which govern the conduct of litigation in England and Wales). It aims to encourage parties to try to settle their disputes by setting out the costs consequences of offers to settle if they are made in accordance with Part 36. Basically, if a party fails to accept a realistic offer made by the other side, it is at risk of being penalised in costs and interest at the end of the case. A Part 36 offer has to specify a period of at least 21 days within which you will be liable for the claimant's costs if you accept the offer (the relevant period). In this case, the relevant period will expire on 24/03/2014. It is possible for the claimant to withdraw or reduce the offer before then, but only with the permission of the court. After the expiry of the relevant period, the claimant can withdraw the offer at any time without the permission of the court by serving a notice of withdrawal. If the offer is withdrawn, it will not have the consequences set out in Part 36, although the court will take it into account when exercising its wide discretion regarding costs. As long as the offer remains open, you can accept it at any time before the start of the trial without the permission of the court. After the trial has commenced the offer can be accepted only with the permission of the court. EFFECT OF ACCEPTANCE OF OFFER If you accept the claimant's offer within the relevant period, the claim will be stayed, and you will be expected to pay the amount which the claimant has asked for in its offer within 14 days of accepting the offer. (If you do not honour the terms of the offer, the claimant could make an application to court to enforce the terms of the offer without the need for bringing a new
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