Docklands Solicitor

Latest legal news from Docklands Solicitors, Kaslers Solicitors LLP.

Thursday 23 June 2011

Part 36 Offer – Time Limits

A Part 36 offer is a formal offer made by one party to the other ,either before or after proceedings are issued, with a view to settling a dispute. If the offer is accepted, that compromises the dispute. If the offer is declined, it will not be disclosed to the judge until after he has made his decision and then it may carry costs consequences

CPR Part 36 does not allow for a time limit to be set for the acceptance of an offer which purports to be a Part 36 Offer.

An offer to settle which purported to be made under Part 36 of the CPR included reference to the offer “being open” for 21 days from the date of the letter and to the costs effects of a failure to accept the offer within the “relevant period”. Almost a year later the offeree purported to accept the offer.

The Judge found that Part 36 did not allow for a time-limited offer. Offers made under Part 36 remain open for acceptance until withdrawn in writing. However the Judge accepted that the words “open for 21 days” could be read to mean that the offer would not be withdrawn within the 21 days and further they were a warning that after 21 days the offer could be withdrawn.

In this instance the Judge found that the offer had been made under Part 36 and attracted the costs consequences of that rule. However, care should be taken when drafting a Part 36 offer to ensure that the provisions of the rule are correctly applied otherwise the Court may rule that the offer was not made under Part 36 and that the costs benefits do not apply.

Labels: offer, open, Part 36, relevant period, time-limited