The Basics: What Do I Need To Know About Part 36 Offers To Settle?

The usual position, in commercial claims proceeding in the courts of England and Wales, is that the loser pays the legal costs of the winning party - or at least a proportion of them. That said, costs are always at the discretion of the court. Importantly, the Civil Procedure Rules (CPR) provide that the courts must take into account any offer to settle that is made during proceedings when exercising its discretion on costs. But not all offers are treated equally when it comes to costs.

The costs provisions that flow from successful offers made under CPR Part 36 make such types of offers worth considering in many commercial claims.

Here we provide an overview of:

• How and when to make a Part 36 offer;