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ARTICLE · 08 JULY 2016

Part 36 Offers - TW Top Tips

Taylor Wessing
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A Part 36 Offer is an offer to settle, which is not only used to encourage settlement, but can also be used tactically, to improve and protect a party's position on costs.

United KingdomLitigation, Mediation & Arbitration
Laura Smith
Laura Smith

What

  • A Part 36 Offer is an offer to settle, which is not only used to encourage settlement, but can also be used tactically, to improve and protect a party's position on costs.
  • The premise behind a part 36 Offer is that a party who has been dragged to trial, having tried to be reasonable, should be compensated. Likewise an unreasonable party, who insists on trial, should be penalised.
  • The rules governing such offers are set out in Part 36 of the Civil Procedure Rules.

How

  • Either party can make the offer at any time, though if made less than 21 days before trial, the automatic costs consequences will not follow and its effects on costs will be at the discretion of the court.

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