Introduction to Part 36 Flashcards
(14 cards)
What is the primary purpose of CPR Part 36?
A. To replace normal contract law for settlement
B. To create a mechanism for urgent injunctions
C. To allow automatic judgments without trial
D. To encourage early settlement by offering financial consequences
D. To encourage early settlement by offering financial consequences
Explanation: Part 36 offers a structured system of incentives and penalties to encourage parties to settle, avoiding unnecessary litigation.
Which of the following is NOT a requirement for a valid Part 36 offer?
A. It must be accepted within 7 days
B. It must set out whether it includes any counterclaims
C. It must be in writing
D. It must state it is made under Part 36
A. It must be accepted within 7 days
Explanation: A valid Part 36 offer must provide a relevant period of at least 21 days, not 7 days.
Which rule allows courts to consider parties’ conduct in settlement efforts?
A. CPR 36.10
B. CPR 36.3
C. CPR 45.1
D. CPR 44.2
D. CPR 44.2
Explanation: CPR 44.2 gives courts discretion to consider the parties’ conduct, including refusal to settle, when awarding costs.
What distinguishes a Calderbank offer from a Part 36 offer?
A. Calderbank offers must be filed at court
B. Part 36 offers cannot be withdrawn
C. Calderbank offers are governed by general contract law
D. Part 36 offers require a judge’s approval to be effective
C. Calderbank offers are governed by general contract law
Explanation: Calderbank offers are made under standard contract law and are considered during cost decisions at the court’s discretion.
A claimant makes a valid Part 36 offer for £20,000, which the defendant refuses. The claimant later wins £25,000 at trial. What is the likely consequence?
A. The claimant receives normal costs only
B. The defendant pays the claimant’s costs on the indemnity basis from the expiry of the relevant period
C. The offer becomes invalid
D. The claimant is ordered to pay the defendant’s costs
B. The defendant pays the claimant’s costs on the indemnity basis from the expiry of the relevant period
Explanation: If the claimant does better than their Part 36 offer at trial, the defendant faces adverse cost consequences under CPR 36.17.
A defendant makes a valid Part 36 offer for £15,000 which the claimant does not accept. The claimant is later awarded only £10,000 at trial. What will the court likely order?
A. The defendant pays full costs
B. No change from standard cost rules
C. The defendant is penalised for making a low offer
D. The claimant pays the defendant’s costs from the relevant period
D. The claimant pays the defendant’s costs from the relevant period
Explanation: If the claimant fails to beat a defendant’s Part 36 offer, they face cost penalties under CPR 36.17(3).
A claimant makes a Part 36 offer but fails to state that it is made under Part 36. What is the consequence?
A. The offer is still valid under Part 36
B. The offer is considered a Calderbank offer only
C. The offer automatically lapses
D. The court must enforce it regardless
B. The offer is considered a Calderbank offer only
Explanation: To benefit from Part 36 consequences, the offer must comply with all formalities. If it fails, it may still be treated as a Calderbank offer under CPR 44.
A defendant makes a Part 36 offer before proceedings are issued. Is this valid?
A. No, Part 36 only applies during proceedings
B. Yes, provided the formalities are met
C. Only if the claimant agrees
D. Only if both parties agree to use arbitration
B. Yes, provided the formalities are met
Explanation: A Part 36 offer can be made before proceedings start, as long as the offer complies with CPR 36.5.
A Part 36 offer is made during proceedings but withdrawn before the trial. The offer is not accepted. Can the court still take the offer into account when awarding costs?
A. No, withdrawn offers are inadmissible
B. Yes, if the offer was open for at least 21 days
C. Only if made by the claimant
D. No, unless it was restated orally at trial
B. Yes, if the offer was open for at least 21 days
Explanation: Even if withdrawn, Part 36 offers open for at least 21 days may still influence the court’s cost decisions under CPR 36.17(5).
A defendant makes a Calderbank offer of £25,000. The claimant recovers only £20,000 at trial. What effect does the Calderbank offer have?
A. None, since it is not a Part 36 offer
B. The court must disregard it
C. The defendant may be awarded some or all of their costs
D. The claimant can claim indemnity costs
C. The defendant may be awarded some or all of their costs
Explanation: Calderbank offers are not binding like Part 36 but may influence the court’s discretionary costs award under CPR 44.
A claimant makes a Part 36 offer that includes an unclear clause about counterclaims. What is the risk?
A. The court will disregard the clause
B. The offer may be invalid as a Part 36 offer
C. The claimant will receive double costs
D. The offer converts to a Calderbank offer automatically
B. The offer may be invalid as a Part 36 offer
Explanation: Clarity is essential. Ambiguities or failure to comply with CPR 36.5 may invalidate the offer as a Part 36 offer.
Which of the following is a benefit of a valid Part 36 offer made by a claimant that is not accepted, but later bettered at trial?
A. Additional damages of up to 10 percent
B. Automatic summary judgment
C. Recovery of court fees only
D. A right to appeal without permission
A. Additional damages of up to 10 percent
Explanation: Under CPR 36.17(4), if a claimant betters their Part 36 offer at trial, they may be awarded enhanced interest and an additional amount of up to 10 percent of the damages.
Which of the following statements best describes the relationship between Part 36 offers and normal contractual principles?
A. Part 36 offers are subject to the usual rules of offer and acceptance under contract law.
B. A Part 36 offer only becomes binding once consideration is exchanged.
C. Part 36 offers follow normal contractual rules unless made in writing.
D. Part 36 offers are governed entirely by Part 36 as a self-contained procedural code.
D. Part 36 offers are governed entirely by Part 36 as a self-contained procedural code.
Explanation: Part 36 of the CPR is a self-contained code. The usual contract law rules of offer and acceptance do not apply to offers made under Part 36. The rules for making, accepting, or withdrawing a Part 36 offer are governed by Part 36 itself.
Serena is a claimant who made a valid Part 36 offer to settle her claim for £50,000. The defendant declined. At trial, Serena is awarded £55,000. Which of the following is most accurate based on Part 36?
A. Serena will only recover her basic costs as if no offer had been made.
B. The court will automatically strike out the defence as the defendant failed to accept.
C. Serena may be entitled to enhanced costs and interest due to the defendant failing to accept her reasonable Part 36 offer.
D. Serena will receive her damages but Part 36 will not apply because the award exceeded her offer.
C. Serena may be entitled to enhanced costs and interest due to the defendant failing to accept her reasonable Part 36 offer.
Explanation: If a claimant makes a valid Part 36 offer that is not accepted, and the claimant later obtains a judgment more advantageous than the offer, the court must (unless unjust) award enhanced costs consequences, including indemnity costs and interest, to the claimant.
