Source: http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part36
Timestamp: 2014-03-10 18:05:15
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CourtsProcedure rulesCivilRules & Practice Directions PART 36 - OFFERS TO SETTLE
PRACTICE DIRECTION 36A – OFFERS TO SETTLEPRACTICE DIRECTION 36B – 36B	Home
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Rule 36.A1
Rule 36.2
Part 36 offers – general provisions
Part 36 offers – defendants' offers
Rule 36.5
Rule 36.6
Rule 36.7
Rule 36.8
Rule 36.9
Rule 36.10
Rule 36.10A
The effect of acceptance of a Part 36 offer
Rule 36.11
Rule 36.12
Rule 36.13
Rule 36.14
Rule 36.14A
Rule 36.15
Rule 36.16
Rule 36.17
Rule 36.18
Rule 36.19
Restrictions on disclosure of a Protocol offer
Rule 36.20
Rule 36.21
Rule 36.22
36.A1
(3) Section II of this Part contains rules about offers to settle where the parties have followed the Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents (‘the RTA Protocol’) or the Pre-action Protocol for Low Value Personal Injury (Employers’ Liability and Public Liability) Claims (‘the EL/PL Protocol’) and have started proceedings under Part 8 in accordance with Practice Direction 8B.
(2) Nothing in this Section prevents a party making an offer to settle in whatever way he chooses, but if the offer is not made in accordance with rule 36.2, it will not have the consequences specified in rules 36.10, 36.11 and 36.14.
(Rule 44.2 requires the court to consider an offer to settle that does not have the costs consequences set out in this Section in deciding what order to make about costs)
(3) Rule 36.2(2)(c) does not apply if the offer is made less than 21 days before the start of the trial.
(5) An offeror may make a Part 36 offer solely in relation to liability.
(a) the party who makes an offer is the ‘offeror’;
(b) the party to whom an offer is made is the ‘offeree’; and
(c) ‘the relevant period’ means –
(i) in the case of an offer made not less than 21 days before trial, the period stated under rule 36.2(2)(c) or such longer period as the parties agree;
(ii) otherwise, the period up to end of the trial or such other period as the court has determined.
(2) A Part 36 offer –
(a) may be made at any time, including before the commencement of proceedings; and
(b) may be made in appeal proceedings.
(3) A Part 36 offer which offers to pay or offers to accept a sum of money will be treated as inclusive of all interest until –
(a) the date on which the period stated under rule 36.2(2)(c) expires; or
(b) if rule 36.2(3) applies, a date 21 days after the date the offer was made.
(4) A Part 36 offer shall have the consequences set out in this Section only in relation to the costs of the proceedings in respect of which it is made, and not in relation to the costs of any appeal from the final decision in those proceedings.
(5) Before expiry of the relevant period, a Part 36 offer may be withdrawn or its terms changed to be less advantageous to the offeree, only if the court gives permission.
(7) The offeror does so by serving written notice of the withdrawal or change of terms on the offeree.
(Rule 36.14(6) deals with the costs consequences following judgment of an offer that is withdrawn)
(1) Subject to rule 36.5(3) and rule 36.6(1), a Part 36 offer by a defendant to pay a sum of money in settlement of a claim must be an offer to pay a single sum of money.
(2) But, an offer that includes an offer to pay all or part of the sum, if accepted, at a date later than 14 days following the date of acceptance will not be treated as a Part 36 offer unless the offeree accepts the offer.
(2) An offer to settle such a claim will not have the consequences set out in rules 36.10, 36.11 and 36.14 unless it is made by way of a Part 36 offer under this rule.
(3) A Part 36 offer to which this rule applies may contain an offer to pay, or an offer to accept –
(a) the whole or part of the damages for future pecuniary loss in the form of –
(i) a lump sum; or
(4) A Part 36 offer to which this rule applies –
(a) must state the amount of any offer to pay the whole or part of any damages in the form of a lump sum;
(b) may state –
(ii) what part relates to other damages to be accepted in the form of a lump sum;
(c) must state what part of the offer relates to damages for future pecuniary loss to be paid or accepted in the form of periodical payments and must specify –
(d) must state either that any damages which take the form of periodical payments will be funded in a way which ensures that the continuity of payment is reasonably secure in accordance with section 2(4) of the Damages Act 1996 or how such damages are to be paid and how the continuity of their payment is to be secured.
(5) Rule 36.4 applies to the extent that a Part 36 offer by a defendant under this rule includes an offer to pay all or part of any damages in the form of a lump sum.
(Practice Direction 41B contains information about periodical payments under the Damages Act 1996)
(2) Where he does so, the Part 36 offer must specify whether or not the offeror is proposing that the settlement shall include an award of provisional damages.
(3) Where the offeror is offering to agree to the making of an award of provisional damages the Part 36 offer must also state –
(4) Rule 36.4 applies to the extent that a Part 36 offer by a defendant includes an offer to agree to the making of an award of provisional damages.
(5) If the offeree accepts the Part 36 offer, the claimant must, within 7 days of the date of acceptance, apply to the court for an order for an award of provisional damages under rule 41.2.
(1) A Part 36 offer is made when it is served on the offeree.
(2) A change in the terms of a Part 36 offer will be effective when notice of the change is served on the offeree.
(Rule 36.3 makes provision about when permission is required to change the terms of an offer to make it less advantageous to the offeree)
(2) If the offeror does not give the clarification requested under paragraph (1) within 7 days of receiving the request, the offeree may, unless the trial has started, apply for an order that he does so.
(Part 23 contains provisions about making an application to the court)
(1) A Part 36 offer is accepted by serving written notice of the acceptance on the offeror.
(2) Subject to rule 36.9(3), a Part 36 offer may be accepted at any time (whether or not the offeree has subsequently made a different offer) unless the offeror serves notice of withdrawal on the offeree.
(Rule 21.10 deals with compromise etc. by or on behalf of a child or protected party.)
(3) The court's permission is required to accept a Part 36 offer where –
(a) rule 36.12(4) applies;
(b) rule 36.15(3)(b) applies, the relevant period has expired and further deductible amounts have been paid to the claimant since the date of the offer;
(d) the trial has started.
(Rule 36.12 deals with offers by some but not all of multiple defendants)
(Rule 36.15 defines ‘deductible amounts’.)
(Rule 41.3A requires an apportionment in proceedings under the Fatal Accidents Act 1976 and Law Reform (Miscellaneous Provisions) Act 1934)
(4) Where the court gives permission under paragraph (3), unless all the parties have agreed costs, the court will make an order dealing with costs, and may order that the costs consequences set out in rule 36.10 will apply.
(5) Unless the parties agree, a Part 36 offer may not be accepted after the end of the trial but before judgment is handed down.
(Rule 44.3(2) explains the standard basis for assessment of costs)
(Rule 44.9 contains provisions about when a costs order is deemed to have been made and applying for an order under section 194(3) of the Legal Services Act 2007.)
(b) the offeree will be liable for the offeror’s costs for the period from the date of expiry of the relevant period to the date of acceptance.
(6) The claimant’s costs include any costs incurred in dealing with the defendant’s counterclaim if the Part 36 offer states that it takes into account the counterclaim.
(4) Subject to paragraph (5), where a defendant’s Part 36 offer is accepted after the relevant period—
(5) Where the claimant accepts the defendant’s Protocol offer after the date on which the claim leaves the Protocol—
(a) defined in accordance with rules 36.17 and 36.18; or
(7) A reference to the ‘Court Proceedings Pack Form’ is a reference to the form used in the Protocol.
(8) Fixed costs shall be calculated by reference to the amount of the offer which is accepted.
(9) Where the parties do not agree the liability for costs, the court will make an order as to costs.
(10) Where the court makes an order for costs in favour of the defendant—
(11) The parties are entitled to disbursements allowed in accordance with rule 45.29I incurred in any period for which costs are payable to them.
(1) If a Part 36 offer is accepted, the claim will be stayed(GL).
(2) In the case of acceptance of a Part 36 offer which relates to the whole claim the stay(GL) will be upon the terms of the offer.
(3) If a Part 36 offer which relates to part only of the claim is accepted –
(a) the claim will be stayed as to that part upon the terms of the offer; and
(b) subject to rule 36.10(2), unless the parties have agreed costs, the liability for costs shall be decided by the court.
(5) Any stay arising under this rule will not affect the power of the court –
(6) Unless the parties agree otherwise in writing, where a Part 36 offer by a defendant that is or that includes an offer to pay a single sum of money is accepted, that sum must be paid to the offeree within 14 days of the date of –
(7) If the accepted sum is not paid within 14 days or such other period as has been agreed the offeree may enter judgment for the unpaid sum.
(2) If the defendants are sued jointly or in the alternative, the claimant may accept the offer if –
(a) he discontinues his claim against those defendants who have not made the offer; and
(3) If the claimant alleges that the defendants have a several liability(GL) to him, the claimant may –
(b) continue with his claims against the other defendants if he is entitled to do so.
(4) In all other cases the claimant must apply to the court for an order permitting him to accept the Part 36 offer.
(1) A Part 36 offer will be treated as ‘without prejudice(GL) except as to costs’.
(2) The fact that a Part 36 offer has been made must not be communicated to the trial judge or to the judge (if any) allocated in advance to conduct the trial until the case has been decided.
(b) where the proceedings have been stayed(GL) under rule 36.11 following acceptance of a Part 36 offer; or
(c) where the offeror and the offeree agree in writing that it should not apply.
(5) Where the court awards interest under this rule and also awards interest on the same sum and for the same period under any other power, the total rate of interest may not exceed 10% above base rate(GL).
(1) Where a claim no longer continues under the RTA or EL/PL Protocol pursuant to rule 45.29A(1), rule 36.14 applies with the following modifications.
(2) Subject to paragraph (3), where an order for costs is made pursuant to rule 36.14(2)—
(3) Where the claimant fails to obtain a judgment more advantageous than the defendant’s Protocol offer—
('Deductible amount' is defined in rule 36.15(1)(d).)
(4) For the purposes of this rule a defendant’s Protocol offer is either—
(5) A reference to the ‘Court Proceedings Pack Form’ is a reference to the form used in the Protocol.
(6) Fixed costs shall be calculated by reference to the amount which is awarded.
(7) Where the court makes an order for costs in favour of the defendant—
(8) The parties are entitled to disbursements allowed in accordance with rule 45.29I incurred in any period for which costs are payable to them.
(1) In this rule and rule 36.9 –
(a) ‘the 1997 Act’ means the Social Security (Recovery of Benefits) Act 19971;
(b) ‘the 2008 Regulations’ means the Social Security (Recovery of Benefits)(Lump Sum Payments) Regulations 20082;
(c) ‘recoverable amount’ means –
(i) ‘recoverable benefits’ as defined in section 1(4)(c) of the 1997 Act; and
(ii) ‘recoverable lump sum payments’ as defined in regulation 4 of the 2008 Regulations;
(d) ‘deductible amount’ means –
(i) any benefits by the amount of which damages are to be reduced in accordance with section 8 of, and Schedule 2 to the 1997 Act (‘deductible benefits’); and
(ii) any lump sum payment by the amount of which damages are to be reduced in accordance with regulation 12 of the 2008 Regulations (‘deductible lump sum payments’); and
(e) ‘certificate’ –
(i) in relation to recoverable benefits is construed in accordance with the provisions of the 1997 Act; and
(i) in relation to recoverable lump sum payments has the meaning given in section 29 of the 1997 Act as applied by regulation 2 of, and modified by Schedule 1 to the 2008 Regulations.
(2) This rule applies where a payment to a claimant following acceptance of a Part 36 offer would be a compensation payment as defined in section 1(4)(b) or 1A(5)(b) of the 1997 Act.
(3) A defendant who makes a Part 36 offer should state either –
(4) Where paragraph (3)(b) applies, paragraphs (5) to (9) of this rule will apply to the Part 36 offer.
(6) Subject to paragraph (7), the Part 36 offer must state –
(b) the name and amount of any deductible amount by which the gross amount is reduced; and
(7) If at the time the offeror makes the Part 36 offer, the offeror has applied for, but has not received a certificate, the offeror must clarify the offer by stating the matters referred to in paragraphs (6)(b) and (6)(c) not more than 7 days after receipt of the certificate.
(8) For the purposes of rule 36.14(1)(a), a claimant fails to recover more than any sum offered (including a lump sum offered under rule 36.5) if the claimant fails upon judgment being entered to recover a sum, once deductible amounts identified in the judgment have been deducted, greater than the net amount stated under paragraph (6)(c).
the court may direct that the amount of the offer payable to the offeree shall be reduced by a sum equivalent to the deductible amounts paid to the claimant since the date of the offer.
(Rule 36.9(3)(b) states that permission is required to accept an offer where the relevant period has expired and further deductible amounts have been paid to the claimant)
(2) This Section applies to an offer to settle where the parties have followed the RTA Protocol or the EL/PL Protocol and started proceedings under Part 8 in accordance with Practice Direction 8B (‘the Stage 3 Procedure’).
(3) A reference to the ‘Court Proceedings Pack Form’ is a reference to the form used in the Protocol.
(2) A Protocol offer must –
36.18 The Protocol offer is deemed to be made on the first business day after the Court Proceedings Pack (Part A and Part B) Form is sent to the defendant.
36.19 A Protocol offer –
(3) Once the claim is determined, the court will examine the Protocol offer.
(1) This rule applies where, on the determination by the court, the claimant obtains judgment against the defendant for an amount of damages that is –
(b) more than the defendant’s Protocol offer but less than the claimant's Protocol offer; or
(b) interest on those fixed costs from the first business day after the deemed date of the Protocol offer under rule 36.18.
(3) Where paragraph (1)(b) applies, the court will order the defendant to pay the fixed costs in rule 45.20.
(d) an additional amount calculated in accordance with rule 36.14(3)(d).
36.22 For the purposes of rule 36.21(1)(a) the amount of the judgment is less than the Protocol offer where the judgment is less than that offer once deductible amounts identified in the judgment are deducted.
1997 c. 27. Back to text
S.I. 2008/1596. Back to text
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