Deborah Edwards on how to avoid the pitfalls of Part 36 offers
In April 2009 the “new” rules governing Part 36 offers will have been in practice for two years. The most significant change has been the abolition of the need for parties to physically pay a sum of money into court to show that they were “good for the money”. The new rules allow any party to make a written off er to settle which can be in respect of any issue.
In the overwhelming majority of cases one and sometimes both parties will seek to conclude an action without it proceeding to a full hearing by making a Part 36 offer to settle. Under Part 36, the person who receives a Part 36 offer can accept “at any time” without the permission of the court, not just within a 21-day period but at any time after that and prior to commencement of trial, provided the party accepting the offer pays the other parties costs.
The implications
A claimant can no longer treat a Part 36 offer as the bottom line safety net.
