There is a revised Form NA for making a Part 36 offer for use with the revised Part 36 rules. However, the revised form is still not available. of such offers. 1. Should a Part 36 offer be made on the standard form? The standard form NA may be used but it is not obligatory to do so. There is a specific form NA, however, an ordinary letter could also be sufficient Currently there is no prescribed form, so a letter would be sufficient. Further.

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This can cause difficulties if you consider that you have a watertight claim or defence: In those circumstances, the court will order the defendant to pay:. Which approach is adopted will depend on the circumstances; in particular, the nature of the counterclaim and the extent of the legal costs on both sides. It is important to note that the consideration of rejected Part 36 offers only come into effect after the issues of liability and quantum have been decided.

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Form N242A: Notice of offer to settle (Section 1 – Part 36)

For example, a defendant that does not consider that the claimant should recover all its costs in vorm of its handling of the matter. In those circumstances, the offeror then has seven days from the date of acceptance to apply to the court for permission. If accepted within that period, the claimant will automatically be entitled to its costs up to acceptance.

Clarification requests are therefore often used tactically, for example to extract information at the pre-action stage, or as a means of extending the relevant period as you can argue that the date the additional information is provided is the date the relevant period begins. The fact that a Part 36 offer has been made and the terms of such an offer must not be communicated to the trial judge until the case has been decided.


Part 36 is a self-contained code which, as a whole, contains a carefully structured and highly prescriptive set of rules dealing with formal offers to settle proceedings which have specific consequences in relation to costs in those cases where the offer is not accepted, and the offeree fails to do better after a trial.

Part 36 can be used in respect of issues in the case but may not be used in relation to interim applications in respect of which the court will exercise its usual discretion as to costs under CPR Once made, Part 36 offers remain open for acceptance until withdrawn, and, as such it displaces the common law.

C gets costs up to the date of acceptance if within the relevant period — D recovers costs from expiry A court is unlikely to grant permission unless the offeror can show a sufficient change of circumstances so that it is in the interests of justice to grant permission, such as the discovery of new evidence which puts a wholly different complexion on the formm.

Although not strictly required under Part 36, parties have n422a criticised in the past for not making the costs consequences clear, particularly where the claimant is a litigant in person.

Without prejudice offers to settle

What is genuine will always be dependent on the circumstances and, in particular, the strength of the parties’ arguments. Or simply for completing and signing forms with your daily professional or business activities. However, the courts have made it clear that significant breaches as well as a conjunction of a number of minor ones could j242a the offer as Part 36 offer.

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It has been necessary to re-number the revised Part To do that, a defendant should make it clear that the original offer still stands and should set out the costs consequences of accepting that offer.


In the course of doing so the interest entitlement could be taken to account. However, the costs consequences may justify it, particularly if the offer is made after substantial legal costs have been generated.

That said, it may be argued by the defendant, particularly if the interest rate is unreasonable. Those are also known as Part 36 offers because the provisions are contained in Part 36 of the Civil Procedure Rules. However, where settlement is not achieved and a party wants to make an offer for costs protection purposes, a Calderbank offer is recommended. Unfortunately, the CPRC sub-committee did not take the opportunity to clarify this.

The position is obviously different where an offeree attempts to accept the offer during the relevant period.

Prior to this, courts had decided whether a claimant had beaten offers in monetary claims by applying a strict financial comparison. If a Part 36 offer is withdrawn, it will not have the usual Part 36 costs consequences.

Like other forms of settlement it can be used to settle all or any part of a claim, monetary or otherwise. Foem relevant period will start once the offer is served on the offeree. Currently there is no prescribed form, so a letter would be sufficient. Where previously it was possible to make a Part 36 offer in an appeal from a tribunal decision HM Revenue and Customs v Blue Sphere Global Ltdit would seem that this is no longer possible.