Part 36 Offers to settle a claim

Question 1

What are three main features of a Part 36 offer

Answer 1

1. Without prejudice
2. Must be in writing
3. Must specify a relevant period which it cannot be withdrawn without court permission

Question 2

What is the minimum number of days for the relevant period?

Answer 2

21 days

Question 3

If a Part 36 offer is unclear, the offeree can request a ________

Answer 3

Clarification

Question 4

How many days does a party have to request a clarification?

Answer 4

7 days

Question 5

When and how can a Part 36 offer be withdrawn?

Answer 5

When the offeree has not served a notice of acceptance

By serving a notice of withdrawal to the other party

Question 6

If an offeree serves notice of acceptance before expiry of the relevant period, acceptance is _____ unless the offeror receives permission to change or _______ the offer based on _______ _______ or the interests of _______

Answer 6

valid, withdraw, changed circumstances, justice

Question 7

How can a Part 36 offer be accepted?

Answer 7

In writing only

Question 8

Can a Part 36 offer be accepted after the relevant period has expired?

Answer 8

Yes - as long as it’s not been withdrawn by the offeror

Question 9

If a Part 36 offer is accepted within the relevant period:

• Offeree will pay the costs of the claim to the point of _______; and
• Costs will be assessed on the _______ basis (reasonable costs) if the parties cannot ______ them

Answer 9

acceptance, standard, agree

Question 10

If D accepts C’s P36 Offer after expiry of the relevant period, who will decide the liability for costs if the parties cannot agree?

Answer 10

The court

Question 11

If C accepts D’s P36 offer after expiry of the relevant period, when does D’s liability to pay C’s costs run up to?

Answer 11

The end of the relevant period i.e. 21 days after the offer was made

Question 12

If C rejects D’s P36 offer and beats the offer, unless unjust, what will D be required to pay?

Answer 12

C’s costs of the entire proceedings on the standard basis

Question 13

C’s Rejection of D’s P36 Offer:

What are the three orders that are likely to be made if C secures an award that’s less than D’s offer?

Answer 13

1. D to pay C’s costs on the standard basis up to the expiry of the relevant period
2. C to pay D’s costs on the standard basis incurred after expiry of relevant period
3. D may be awarded interest on the costs

Question 14

D’s rejection of C’s P36 Offer:

What are the three orders likely to be made if C secures a greater award than the amount in their offer?

Answer 14

1. D to pay interest on claim at an enhanced rate (10%) for the time after the acceptance period expired
2. Costs assessed on indemnity basis with an enhanced interest rate of up to 10%
3. Additional damages

Question 15

D’s rejection of C’s P36 Offer:

What is the rate of additional damages?

Answer 15

Up to 10% for the first £500,000
5% for amounts above that

Question 16

D’s rejection of C’s P36 Offer:

If C secures an award for less than the amount of their offer, the offer has __ ______ on the costs that will be rewarded

Answer 16

No effect

Question 17

Within how many days of acceptance must a Part 36 offer be paid?

Answer 17

14 days