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LPC Law Notes Civil Litigation Notes

Part 36 Offers Notes

Updated Part 36 Offers Notes

Civil Litigation Notes

Civil Litigation

Approximately 418 pages

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Civil Litigation

FIVE: Part 36 offers and Settlement

Part 36 offer

CPR 36


  • Formal offer to settle an action / part of an action.

  • Made “without prejudice save as to costs” = only ‘offeror’ and ‘offeree’ know about the offer. They cannot disclose to third party / judge.

  • Part 36 offers are inclusive of interest until expiry of the relevant time period, after which interest will continue to accrue in addition to the offer.

Formalities of a P.36 offer – CPR 36.2(2)

Offer must be:

  1. In writing

  2. State on the face of it that it is a P.36 offer

  3. Specify period not less than 21 days within which D will be liable for C’s costs in accordance with CPR 36.10 if offer is accepted.

  4. Whether it related to whole / part of claim

  5. State whether it takes into account any counter claim

If these are not complied with – the offer will not have the P.36 cost consequences. [CPR 36.1(2)]

Accepting P.36 offer – CPR 36.9

  • CPR 36.9 (2) can be accepted any time. Even after time period of the offer has expired. Cannot be accepted if formally and properly withdrawn by offeror.

Effect of acceptance – CPR 36.11

  • The claim is stayed on the terms of the offer

Cost consequences – CPR 36.10

Claimant is offering
  • If defendant accepting P.36 offer within relevant time period: D will pay C’s costs up until the date on which the notice of acceptance was served on the offeror.

  • If D rejects P36 offer and D wrong to reject the offer?

e.g. D has to pay 10K more at trial [40K] than C’s offer [30K]

e.g. D has to pay same amount at trial [40K) as C’s offer [40K]

D will be penalised if they have to pay more / same as claimant’s original P.36 offer because there was no point in going to trial.

CPR 36.14 (3):

D will pay on a standard basis up until the relevant period expires and then it is at courts discretion to order him to pay [i.e. following the expiry of the relevant period]:

  1. Higher interest on damages

  2. D pays claimant’s costs on an indemnity basis (more onerous – no proportionality. If there is any doubt as to costs it will be awarded in favor of the receiving party).

  3. Higher rate of interest on the costs.

Defendant offering
  • If...

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