Should I Accept A Part 36 Offer?

Part 36 offers are named after the Civil Procedure Rules (CPR) Part 36. Part 36 deals with offers made on a ‘without prejudice’ basis, which means the Court will not see the offer — should the claim get that far — until after judgment.

A Part 36 offer may be used strategically to try to settle a claim and avoid going to court with all the associated expenses and time involved. 

If you refuse a Part 36 offer and the claim goes to Court and the award made is lower than the Part 36 offer, the Court will order you to pay the defendant’s costs from the date you should have accepted the offer. Typically, there is a 21-day time frame to accept a Part 36 offer. The response to a Part 36 offer is strategically critical. It is essential to take professional legal advice before deciding how to respond.

There can be adverse consequences in refusing a Part 36 offer, so it is essential to be fully informed and aware before deciding to follow this course of action.

It is important to note that a Part 36 offer can be accepted at any time. However, if it is accepted outside the relevant period of at least 21 days, then slightly different cost consequences apply.