Part 36 Offers - New Penalties For Unreasonable Defendants

Michael Axe considers how substantial additional penalties may now be available to a Claimant from a Defendant who fails to beat a Claimant's Part 36 settlement offer, thanks to recent changes to the court rules.

Settlement offers made in accordance with Part 36 of the Civil Procedure Rules (known as "Part 36 Offers" for short) have become a crucial weapon in the arsenal of any party involved in litigation.  Their primary benefit to date have been that they provide additional advantageous cost consequences to a party that makes a Part 36 Offer which the other side does not accept and then fails to beat at trial.

However, there was a perception amongst some that the Part 36 rules did not provide a Claimant with as many advantageous cost consequences as were provided to a Defendant.  For example, a Defendant who was awarded advantegeous cost consequences (for making a Part 36 Offer which the Claimant failed to beat) would normally be entitled to: