• Careers-banner

    Podcasts

Property Patter: the basics of settlement offers

Settlement offers are often a sensible route for trying to settle disputes, not least because they offer flexibility which may be unavailable from a court judgment. Emma Humphreys and Samuel Lear are joined by Caroline Greenwell of our Commercial Dispute Resolution Team to discuss the differences between Calderbank offers and offers made under CPR Part 36 and the basics of how they work in practice. 

You can also find our podcasts on PodbeanApple Podcasts and Spotify.

 

Action Costs consequences
Part 36 offer for the whole claim, made at least 21 days before trial, is accepted (by claimant or defendant) within the relevant period.

Claimant is entitled to the costs of the proceedings (including their recoverable pre-action costs), to be assessed on the standard basis if not agreed, up to the date of service of notice of acceptance.

Part 36 offer for the whole claim, made at least 21 days before trial, is accepted (by claimant or defendant) after expiry of relevant period.

If the parties cannot agree liability for costs, the court must, unless it considers it unjust, order that the claimant be awarded costs up to the date when relevant period expired and offeree do pay offeror's costs from expiry of relevant period to date of acceptance.

Claimant beats defendant's offer, that is, claimant does not accept defendant's Part 36 offer and obtains a more advantageous judgment.

Costs will be decided in the usual way (see CPR 44.2).

Claimant fails to beat defendant's offer, that is, claimant does not accept defendant's Part 36 offer and fails to obtain a more advantageous judgment.

Unless it considers it unjust to do so, the court must order the claimant to pay defendant's costs (including any recoverable pre-action costs) from date when relevant period expired and interest on those costs.

Claimant equals or beats its own offer, that is, defendant does not accept Part 36 offer and claimant obtains a judgment that is equal to or more advantageous than offer.

Unless it considers it unjust to do so, the court must order the defendant to pay the claimant's costs (including any recoverable pre-action costs) on the indemnity basis from the date the relevant period expired and:

  • Interest on those costs of up to 10% above base rate.
  • Interest on the whole or part of any sum of money (excluding interest) awarded at up to 10% above base rate for some or all of the period starting from the date when the relevant period expired.
  • An additional amount of 10% of the first £500,000 of damages awarded, or 10% of the first £500,000 of costs where there is no monetary award, and 5% of any amount above those figures, subject to the limit of £75,000.
Claimant fails to equal or beat its own offer, that is, defendant rejects Part 36 offer and claimant obtains a less advantageous judgment.

Costs will be decided in the usual way (see CPR 44.2).

Table Credit: Sydney Lee

Our thinking

  • IBA Annual Conference 2025

    Simon Ridpath

    Events

  • Next Gen Rural Professionals Drinks Reception

    Events

  • Triple Play "Bid Fever": UK Tech's ability to scale and go global

    Mark Howard

    Quick Reads

  • The Future of AI and Copyright Regulation in the UK: The Data (Use and Access) Bill finally gets Lords approval in the UK

    Rebecca Steer

    Quick Reads

  • HM Land Registry's Digital Drive - Delays Persist but perhaps there is light at the end of the tunnel?

    Maisy-Jane Cook

    Quick Reads

  • Key aspects of the FCA’s PISCES Sourcebook

    Jodie Dennis

    Insights

  • Mike Barrington and Mary Perham write for Tax Adviser on what the proposed changes to business property relief mean for investors and entrepreneurs, and for their businesses

    Mike Barrington

    In the Press

  • Bloomberg quotes Catrin Harrison on the recent exodus of non-doms from the UK

    Catrin Harrison

    In the Press

  • Trusts and Matrimonial Disputes in England

    Tom Watts

    Insights

  • The Financial Times and Daily Mail quote Emma Humphreys on the impact of the UK Government's Spending Review on housebuilding targets

    Emma Humphreys

    In the Press

  • Consultation on Private International Law and Digital Assets Law Commission Proposes Landmark Reforms

    Racheal Muldoon

    Insights

  • Navigating International M&A Disputes: Insights and Strategies for 2025

    Stephen Burns

    Quick Reads

  • Bridging Differences: The Role of Mediation in Resolving Cross-Border Trust Disputes

    Tamasin Perkins

    Insights

  • Planning essentials case update: what changes can I make to my listed building?

    Sadie Pitman

    Quick Reads

  • Rachel Warren writes for Solicitors Journal on the new failure prevent fraud offence

    Rachel Warren

    In the Press

  • MoneyWeek quotes Mary Perham on whether business property relief can be claimed on a furnished holiday let

    Mary Perham

    In the Press

  • Anti-greenwashing in the UK, EU and the US: the outlook for 2025 and best practice guidance

    Caroline Greenwell

    Insights

  • Sowing doubt: slashing green farm funding is a risk we can't afford

    Maddie Dunn

    Quick Reads

  • Can a contractor adjudicate to recover outstanding retention monies from the employer’s assignee?

    Kate Knox

    Insights

  • HS2 - still no sign of a train leaving the station

    Richard Flenley

    Quick Reads

Back to top