News & Insights

Settling on Part 36 – Claimant’s Offer

A Part 36 Offer is an offer to settle the claim. This offer can be made at any stage of the legal proceedings by the Claimant or the Defendant. We briefly focus here on the impact on Defendant clients receiving a Part 36 Offer.

What are the cost consequences for the Defendant?

Action by Defendant Consequence for Defendant
Accepting the Part 36 Offer
  • Defendant   pays amount within 14 days of acceptance
  • Defendant   pays Claimant’s reasonable costs until date of acceptance
Rejecting the Part 36 Offer If the Claimant beats its offer (or receives damages equalling the   offer) at trial, the Defendant could pay (subject to court discretion):

 

  • Amount   awarded by court;
  • Interest   on that amount;
  • Claimant’s   costs (not limited to reasonable costs);
  • Interest   on costs; and
  • An   additional amount of 10% of the sum awarded.

 

Ultimately, the question the Defendant needs to consider before accepting or rejecting the offer is whether he genuinely believes he can beat the offer at trial.

Part 36 Offers carry significant consequences and in light of recent changes in respect of offers made after 6 April 2015, it is a good idea to seek advice from your solicitor if you have received a Part 36 Offer or are considering making one. Foskett Marr Gadsby & Head LLP’s regularly advise clients on Part 36 Offers; please contact Richard Gordon on 01992 578 642.

https://www.foskettmarr.co.uk/index.php/expertise/litigation/

 

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