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Part 36 Offers Notes

LPC Law Notes > Civil Litigation Notes

This is an extract of our Part 36 Offers 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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When to make the offer

How to make the offer

Costs Consequences on acceptance of offer
Offeree serves notice of acceptance

Costs consequences of rejection of offer
At trial, the Part 36 Offer is beaten

At trial, the Part 36 Offer is not beaten

CPR 36
CPR 36.7:
(1) A Part 36 offer may be made at any time, including before the commencement of proceedings.
(2) A Part 36 offer is made when it is served on the offeree.
CPR 36.5:
(a) be in writing;
(b) make clear that it is made pursuant to Part 36;
(c) specify a period of not less than 21 days within which the defendant will be liable for the claimant's costs in accordance with rule 36.13 or 36.20 if the offer is accepted;
(d) state whether it relates to the whole of the claim or to part of it or to an issue that arises in it and if so to which part or issue; and
(e) state whether it takes into account any counterclaim.
CPR 36.13:
 D pays damages to C if accepted within the relevant period
 The C is entitled to costs of the proceedings up until the date on which the notice of acceptance was served
 If accepted late, split costs unless otherwise agreed or ordered
CPR 36.6(2):
 Must pay all or part of the costs within 14 days or risk default judgement
D makes offer, C does not accept
D pays C's costs subject to court's discretion

C makes offer, D does not accept
D pays damages awarded plus enhanced rate interest from expiry of relevant period plus an additional amount:
Court will make a split costs order:
 D pas C's costs up to the end of the relevant period
 D pays C's costs after relevant period on indemnity basis, plus enhanced rate of interest on those costs
 D pays its own costs

Court will make a split costs order:
 D pays C's costs on standard basis up to the expiry of the acceptance, and bears own costs
D pays damages at standard rate for this period
 C pays D's costs on standard basis plus interest on costs, and bears own costs
C loses at trial
C pays D's costs on standard basis and C pays D's costs on standard basis and bears own costs bears own costs
 36.9 - (1) A Part 36 offer can only be withdrawn, or its terms changed, if the offeree has not previously served notice of acceptance
 36.16 - (1) A Part 36 offer will be treated as "without prejudice except as to costs".
 (2) The fact that a Part 36 offer has been made and the terms of such offer must not be communicated to the trial judge until the case has been decided.
 36.14 - (2) In the case of acceptance of a Part 36 offer which relates to the whole claim, the stay will be upon the terms of the offer.
 (3) If a Part 36 offer which relates to part only of the claim is accepted, the claim will be stayed as to that part upon the terms of the offer.

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