What is a Part 36 offer letter?

What is a Part 36 offer letter?

Part 36 is a provision in the Civil Procedure Rules (“CPR”) designed to encourage parties to settle disputes without going to trial. If a party does not accept an offer made under Part 36 (a “Part 36 offer”), it risks being made liable to pay more in interest and/or costs on a judgment than if no offer had been made.

How do I draft a Part 36 offer?

How can a Part 36 offer to settle be made?

1. Be in writing.
2. State on its face that it is intended to have the consequences of Part 36.
3. Specify a period for acceptance of not less than 21 days within which the defendant will be liable for the claimant’s costs if the offer is accepted (the “relevant period”)

Can you negotiate a Part 36 offer?

This is what makes a Part 36 Offer such a powerful negotiating tool. However, a Defendant can also make such an offer as a way of reducing its own cost liability, whilst making the Claimant potentially liable for its costs in the future. A Part 36 Offer can be made at any time, even pre-action.

How do you get a counter offer in Part 36?

Formalities of making a Part 36 offer

1. State that it is a Part 36 offer.
2. State whether it relates to the whole of the claim or part of it, and if so which part.
3. State whether it takes into account any counterclaim.
4. Offer a figure inclusive of interest.

When can a Part 36 offer be accepted?

A Part 36 offer can be accepted at any time unless the offer has been withdrawn. That means that, even if originally rejected or a counter-offer is made, the offer is still open for acceptance until it is withdrawn.

What happens if a Part 36 offer is rejected?

Part 36 refers to Part 36 of the Civil Procedure Rules, which governs the Court rules regarding accepting or rejecting the offer. If the Part 36 Offer is accepted, it ends your claim and you will receive the amount offered. The Defendants reject the offer and again your claim ends up at a Court hearing.

Can a Part 36 offer be made by email?

CPR 36.9 (2) confirms that the offeror withdraws the offer by serving written notice of the withdrawal on the offeree. Practice Direction 6A para 4.1(1) confirms that service by e-mail is only effective if the other party has indicated in writing that it is willing to accept service by e-mail.

Can you make a Part 36 offer in the portal?

Although a Part 36 offer can be made at any time in any non-small claims track matter it has no consequences if a matter is resolved by the end of stage 2 of the portal process.

Should I reject Part 36 offer?

There is no need formally to reject an offer received, and (subject to the risk of its being withdrawn) neither the making of a counter-offer nor the formal rejection of a Part 36 offer will prevent its later acceptance in accordance with CPR 36.11(2).

Can a Part 36 offer be made less than 21 days before trial?

a Part 36 offer that is made less than 21 days before the start of the trial is accepted ; or • a Part 36 offer is accepted after the expiry of the Period of Acceptance, if the parties do not agree the liability for costs, the court will make an order as to costs.

What are the requirements for a part 36 offer?

Part 36 offer requirements. A Part 36 offer must be in writing, state that it is intended to have the consequences of Part 36, state whether the offer is made to settle the whole claim or only part of it (and if so which part) and whether it takes into account any counterclaim.

When to ask for clarification of Part 36?

Clarification of Part 36 offers. A party can within 7 days of receiving the offer request clarification of the offer to enable it to consider the offer properly, and if it does not receive such clarification it can ask the court to make an order requiring the party making the offer to supply it.

Can a part 36 offer be used to settle a claim?

Like other forms of settlement it can be used to settle all or any part of a claim, monetary or otherwise. It can also be used to settle counterclaims and additional claims, and Part 36 offers can be made solely in relation to liability, leaving quantum to be argued over. 2

When is a defendant liable under Part 36?

When an offer is accepted within the relevant period, a defendant will automatically be liable for the claimant’s costs up to the date of acceptance. Part 36 will therefore not be appropriate where a defendant seeks a “drop hands” settlement or only wants to pay a proportion of the claimant’s costs. Part 36 offers cannot be made inclusive of costs.