• 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

  • Trading insolvently or trading out of difficulty? Are we being naughty or did we have the best intentions? Part 3

    Claudine Morgan

    Insights

  • Stamp Duty has been relaxed for Non-HK Residents and Overseas Talents, are you looking to invest in Hong Kong real property?

    Ian Devereux

    Insights

  • Nikkei Asia quotes Stephen Chan on the new rules on reciprocal enforcement in Hong Kong

    Stephen Chan

    In the Press

  • Radical reforms to fight economic crime: what should businesses do now?

    Rhys Novak

    Insights

  • Q&A: Supreme Court finds for Danish tax authority

    Hugh Gunson

    Insights

  • City AM quotes Eddie Richards on the logistical challenges of data centres

    Eddie Richards

    In the Press

  • Claims for reasonable financial provision beyond the grave?

    Jennifer Doggett

    Insights

  • Arbitration Rules – How Different Are They?

    Mazin Al Mardhi

    Insights

  • What the cancellation of HS2 Phase 2 means for former landowners

    Richard Flenley

    Insights

  • The status of transgender and intersex athletes in international sports federations

    Pierre Bydzovsky

    Insights

  • Charles Russell Speechlys advises Development Partners International and Verod Capital Management on investment into Pan African Towers

    Adrian Mayer

    News

  • Overview of the Leasehold and Freehold Reform Bill: What are the key provisions?

    Laura Bushaway

    Insights

  • James Broadhurst writes for the Financial Times’ Your Questions column on business succession plans

    James Broadhurst

    In the Press

  • Talking Retail quotes Jamie Cartwright on the CMA's report on grocery price inflation

    Jamie Cartwright

    In the Press

  • Property Week quotes Claire Fallows on reforms to the planning system announced in the Autumn Statement

    Claire Fallows

    In the Press

  • Francesca Charlton and Kayleigh McKee write for People Management on the Worker Protection Act

    Francesca Charlton

    In the Press

  • Charles Russell Speechlys successfully advises the Joint Liquidators of LB GP No.1 Ltd in Lehman Brothers litigation before the High Court in London

    Daniel Moore

    News

  • Q&A: Adverse possession

    Hope Barton

    Insights

  • FT Wealth quotes Sarah Anticoni and Vanessa Duff on prenups to protect family wealth

    Sarah Anticoni

    In the Press

  • Caroline Swain writes for Startups Magazine on 'Green Claims'

    Caroline Swain

    In the Press

  • DIAC Issues First Annual Report

    Georgia Fullarton

    Quick Reads

Back to top