Part 36 offers- what do you need to know?
Written by Ellis Sweetenham on 24 November 2016« Return to Reading Room
When either party has issued a claim you have a number of options available to you in an attempt to prevent the matter proceeding to court.
Any attempt to conclude proceedings and reach a conclusion between you and the other party will not only reduce the time spent on the matter but also reduce costs for you.
A way in you can reach a solution that satisfies both of you is through an offer and a settlement.
A type of offer that will need careful consideration from you is a Part 36 offer.
These can be made by both the claimant and defendant however the outcomes can differ depending on the source of the offer.
A Part 36 offer to settle is given before the case reaches trial and is only live for a period of 21 days. Therefore you need to give careful and swift consideration to them if you are on the receiving end of one. From the 22nd day, the offer can still be open to acceptance, but will affect the payment of costs, so again time is of the essence.
A key feature of this offer is they will not be shown to the court if the matter was to proceed to trial. The only time they will be revealed to the judge is in relation to the calculation of costs.
There are severe financial penalties for refusing a Part 36 offer that results in being more or equal to the damages awarded in the case. These penalties hit the defendant in the case very hard therefore if you find yourself in this position, you need to consider the offer very seriously and always seek advice from Lawdit, who have had vast experience with these offers and will be able to guide you to making the right offers.
An important element to consider when looking at accepting a Part 36 is the payment of costs. Even as a defendant if your Part 36 offer is accepted, you are still admitting liability as such therefore you will still have to pay the claimant’s costs up to the date of the submission of the offer. This amount should be agreed between you and needs to be factored in to your budget.
For more information and guidance, get in contact with Lawdit Solicitors
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