Source: https://verycivilbarrister.co.uk/legal-costs-part-36-offers
Timestamp: 2019-01-16 03:49:56
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Part 36 offers and legal costs: a beginner's guide - Stephen Innes
CostsDirect Access ClientsLegal ArticlesPart 36 offers and legal costs: a beginner’s guide
August 10, 20174
Legal costs: a beginner’s guide to Part 36 Offers
In this beginner’s guide, I discuss some of the most important aspects of Part 36 offers, an aspect of legal costs.One of the major advantages which lawyers have over litigants in person is their knowledge of the complex civil procedure rules. The most devastatingly deployed weapon in the arsenal is the Part 36 Offer. Litigants consulting a direct access barrister in civil cases should always ask to discuss whether such an offer could assist in their case.
The civil procedure rules are divided into parts, with each part dealing with a different topic. So, for example, Part 6 deals with service of court documents, Part 23 deals with applications to court, and Part 44 deals with legal costs. Part 36 gives its name to a particular type of offer.
The trial is often the stage at which the biggest proportion of the legal costs are incurred, but it can readily be seen that the earlier the offer is made by the Defendant, the greater the proportion of the costs which it brings into play, and therefore the greater the risk for the Claimant in continuing with the claim and not accepting the offer. If you leave it too late, and make the offer less than 21 days before trial, it might have no effect at all. That it is why it far better to consult a direct access barrister as early as possible to discuss Part 36 Offers. A well-pitched Part 36 Offer at the outset of the case, even before proceedings have been issued in court, can put the Claimant at risk of the whole of the costs of the action.
Claimants can also make Part 36 Offers. The offer needs to be a genuine offer, meaning that it has to make some concession – an offer to accept 100% of your claimed damages would not be effective, but an offer to accept 95% probably would be (see my separate post on genuine Part 36 Offers https://verycivilbarrister.co.uk/part-36-genuine-offer-to-settle). If the Claimant does at least as well as his offer at trial, the court (unless, exceptionally it considers this unjust) will award him a whole package of benefits:
So if your claim was for £100,000, you made a Part 36 Offer of £80,000, and you are awarded damages of £90,000, you would then be awarded an additional £9,000. Legal costs on the indemnity basis, rather than the standard basis, can make quite a difference, as the costs are not subject to the test of proportionality, which can lead to substantial reductions. Again, it can be seen that the earlier the offer is made, the better, since then the indemnity costs and increased rate of interest run for a longer period.
Very often, litigation is all about legal costs. It is therefore a very good idea to seek specialist advice in relation to Part 36 Offers, at the earliest opportunity.
I was made a 36 offer of £6000 in my case against a hospital they have admitted fault in there action cause my dad’s death and this was also confirmed in an inquest I don’t know what I expected to be offered but I found this outrageous offer especially as they were at fault for my dad’s death just looking for advice.
please do contact me using the contact details on this page if you would like to discuss your case and whether I can help you:
https://verycivilbarrister.co.uk/contact