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Part 36 Offers Purpose & Definition The purpose of a Part 36 Offer is to offer a settlement with financial incentives attached (namely damages, interest and costs). There must be a valid Part 36 Offer for the cost consequences to apply (CPR 36.5). The offer must be made to the legal representatives of the party (36A PD 1.2) and state it is 'without prejudice save as to costs' (CPR 36.16(1)). The offer is only made when it is served on the other party (CPR 36.7(2)). The offer must be in writing and clearly state that it is pursuant to Part 36 (CPR 36.5(1)(a)(b)). The offer must settle all or part of the claim (CPR 36.5(1)(d)) and be clear as to interest (CPR 36.5(4)) and costs (CPR 36.13). The offer can be withdrawn pursuant to CPR 36.9(4).
Accepting the Offer Offers can accepted by serving written notice on the claimant (CPR 36.11(1)). The claimant will be entitled to the settlement amount and the cost of proceedings up until the notice was served (CPR 36.13). This amount must be paid within 14 days (CPR 36.14(6)). The court will then stay the claim (CPR 36.14(1)). Recording the Offer Offers will be recorded in a Consent Order or in a Tomlin Order. A Tomlin Order is a form of consent order which allows the parties to make their settlement order confidential.
* Part 1 of the order is the public face of the order and records and contains actions enforceable by the court, the stay in proceedings and details of costs.
* Part 2 of the order is the confidential part and can contain commercial sensitive information and non-legal settlement options (e.g. letter of apology, maintaining relationships etc.)
Two Valid Offers If both the claimant and the defendant make valid Part 36 Offers at the same time then the following consequences will apply:
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