Settlement – How To Accept Part 36 Offers

Sutton Jigsaw Transport Limited v Croydon LBC [2013] EWHC 874

Part 36 of the CPR provides a mechanism whereby parties are encouraged to settle claims – a party who does not accept a Part 36 settlement offer may be subject to additional costs and interest. The ruling in this case confirms that parties must strictly adhere to these rules if they wish to obtain the benefits of Part 36.

Sutton Jigsaw related to the claimant's application under CPR 36.9 (3) for permission to accept a Part 36 offer put forward by the defendant. The claimant initially sought to accept the Part 36 offer during the first day of trial by handing the defendant's barrister a handwritten note during a short adjournment. Two minutes after the claimant's purported acceptance, the defendant faxed a letter withdrawing the Part 36 offer to the claimant's solicitor's office (the claimant's nominated address for service).