Part 36, what does it mean?

This article was published on: 11/30/15

Going through the process of a personal injury claim can be pretty daunting if you don’t know some of the legal jargon. It is essential that clients have some knowledge of these terms so that they understand what’s going and how their claim is progressing.

In this blog we will hopefully explain, in layman terms, what Part 36 of the Civil Procedure Rules is and how it affects and influences your claim.

What is a Part 36?

Part 36 of the Civil Procedure Rules allows a party in litigation to make a settlement offer before trial, on terms that if the offer is not accepted and the opposing party fails to beat the offer at trial, the Court is likely to impose severe costs and/or interest penalties.

The Part 36 offer procedure can be a very powerful negotiating tool and it provides a great incentive to settle a case before trial proceedings are issued..

Who can make a Part 36 offer?

In terms of who can make a Part 36 offer, it can be made by either the Claimant or the Defendant at any time within the duration of a claim and can be on the issue of liability or the valuation of the claim.  This means that when an offer to settle the claim is made, the party making it does not have to admit liability. A Part 36 Offer can be accepted within 21 days of it being made, but after 21 days the party making the offer does have the right to withdraw the offer and proceedings would continue as if the Part 36 offer was never made.

How many offers can be made?

It is possible to make more than one Part 36 offer,.as both parties may decide to make an initial offer at a level well below the amount that they would be prepared to settle at and then increase it if it is not accepted. Parties should, however, be wary of making too many offers, as this may encourage the other party to think that they should not accept an offer, as an increased offer may follow.

Are there any costs involved?

The purpose of a Part 36 offer is to put pressure on a party to accept a settlement and that there would be cost consequences of this. For example if the offer was rejected but then the offer is not beaten at a later trial or settlement, you may be responsible for paying for the other parties fees and costs from the date in which you could have accepted an offer, up until the settlement of the claim. This means that your compensation may be significantly lower because most of the fees and costs have been taken out of it.

Effects of a Part 36 offer

A Part 36 Offer and payments can be a very important tactical system and anyone involved in litigation should give careful consideration as to whether to make such an offer.  However, if it is at a level likely to cause concern to the opponent, then it can prove to be a very cost-effective method of settling a claim, or at least protecting yourself against some of the inherent costs risks of a trial.

Deciding whether to take a Part 36 offer or not

When considering whether to except a Part 36 offer or not, it is important to consider all offers carefully and consult with your solicitor to discuss all eventualities.

How we can help

For more than 23 years we have been providing help and support to a wide variety of people with their claims for personal injury. We have a great team of experienced personal injury Solicitors dedicated to helping you with any injury claim you may have, whether it be an accident at work, a road traffic accident, industrial deafness, loss of eyesight or amputation.

So if you have suffered an injury as a result of any of the above and it wasn’t your fault, get in touch, either by filling out the form to the right hand side of the page, or by giving us a call on 01695 712 451.

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