Deck 9: Part 36 Offers and Offers to Settle Outside Part 36

Question 1

Which of the following statements best describes a CPR 36 offer?

A) Either a written or verbal offer designed to show a willingness to settle and which can be shown to the court at any time.
B) A written 'without prejudice save as to costs' offer that is expressed to be open indefinitely but if accepted within a relevant period of at least 21 days, there is an implicit order for costs in favour of the receiving party.
C) A written offer to compel settlement made after the issue of proceedings.

Answer 1

B

Question 2

By accepting a Defendant's CPR 36 offer for a sum of money within the relevant period which of the following is the Claimant entitled to?

A) Payment of his costs on the indemnity basis.
B) Payment of the specified sum offered within 14 days of acceptance.
C) Payment of his costs and damages within 21 days of acceptance.
D) Assessment of his costs on a summary basis.

Answer 2

B

Question 3

CPR 36 deals with the position of withdrawal of offers. Which of the following statements is incorrect?

A) The offeror may withdraw the offer within the relevant period but only with the permission of the court.
B) The offeror may withdraw the offer in writing outside the relevant period without the permission of the court provided the offer has not been accepted in writing.
C) Once the offer has been withdrawn it no longer has the usual costs consequences.
D) The offeror can withdraw any offer even if it has been accepted in writing.

Answer 3

D

Question 4

If a Defendant rejects a Claimant's CPR 36 offer and at trial the Claimant is awarded the same or more than the offer, what are the cost/interest consequences?

A) Interest on damages at the Bank of England rate.
B) Costs to be assessed on the standard basis.
C) If it is not unjust to do so, enhanced interest, costs assessed on the indemnity basis from the last date the Defendant could have accepted the P36 plus enhanced interest on costs and a 10% penalty increase in damages.
D) The Defendant pays the Claimant's costs of the action on the indemnity basis.

Question 5

Which of the following best describes the costs position if a Claimant made a CPR 36 offer but failed to beat it at trial?

A) The Claimant will be ordered to pay the Defendant's costs from the last date of acceptance of the offer to trial on the indemnity basis.
B) The Claimant will be ordered to pay the Defendant's costs from the last date of acceptance of the offer to trial on the standard basis.
C) The Claimant will recover no interest on the damages awarded.
D) The offer is ineffectual as regards any costs consequences as costs are decided in the usual way.