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ARTICLE · 21 JUNE 2024

Offers, Are They Really Worth It?

Stephens Scown
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A Part 36 offer encourages dispute settlement outside court by imposing adverse cost consequences if rejected. Hugh Grant's case against News Group Newspapers illustrates its impact, as he settled to avoid nearly £10 million in legal costs.

United KingdomCorporate/Commercial Law
Stephen Wray
Stephen Wray
Christopher Jackson
Christopher Jackson

A Part 36 offer is a type of offer made during disputes which aims to encourage parties to settle these disputes outside of the court process.

If a party does not accept an offer, then they risk facing adverse cost consequences. As a result, it is vital that any party receiving a valid Part 36 offer carefully considers whether the offer should be accepted or not.

This was illustrated in the recent case involving the actor Hugh Grant.

Hugh Grant vs News Group Newspapers

In this case, Hugh Grant was suing News Group Newspapers (NGN) on the basis that journalists had used private investigators to tap his phone and burgle his house.

Hugh Grant admitted that whilst he would 'love to see all the allegations that they deny tested in court' he has chosen to settle the privacy case outside of court because 'the rules around civil litigation mean that if I proceed to trial and the court awards me damages that are even a penny less than the settlement offer, I would

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