What is a Part-36 offer?

If there is a legal dispute, both the claimant and the defendant can make a Part 36 offer in an attempt to settle the case. The offer must be made in writing and clearly marked, and it can be advantageous to both parties.

However, if a reasonable offer is rejected, it can result in costly penalties, even if the party who rejected it is successful at trial. Part 36 offers can be used to settle various personal injury claims, including workplace accidents, road traffic accidents, and medical negligence.

To learn more about Part 36 offers to settle, continue reading our guide below. If you would like to speak to a member of our team, call 0800 470 0474 or request a call back. You will receive a free consultation with an experienced legal adviser who can help you secure the maximum compensation for your losses.

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Table of Contents

• What are Part 36 offers to settle?
• What are the conditions for a valid Part 36 offer?
• When is a Part 36 offer made?
• Who can make a Part 36 offer?
• What are the advantages of a Part 36 offer?
• Can I modify or withdraw my offer?
• Should I accept a Part 36 offer?
• What happens once I accept an offer?
• What happens if I reject a Part 36 offer?
  • If you receive an offer:
  • If you make an offer:
• What is the difference between Part 36 and 'without prejudice' offers?
• What types of personal injury claims can be settled with Part 36 offers?
• Time limits to start a compensation claim
• Do I need a solicitor to settle my claim?

What are Part 36 offers to settle?

A Part 36 offer is an official settlement proposal made under Part 36 of the Civil Procedure Rules (CPR). It was introduced in 1999 as part of the CPR, hoping to help settle cases out of court by applying financial consequences if an offer is unreasonably rejected.

The main features of a Part 36 offer include:

• The offer can be made by either the claimant or defendant in a case at any stage and must be made in writing, clearly marked with ‘pursuant to Part 36’.
• The Part 36 offer can be in relation to the whole of a claim or just part of it.
• It must specify a time limit for acceptance of the offer, known as the relevant period, but this must be at least 21 days.
• If a reasonable offer is declined, the costs and consequences should also be laid out in the offer, and if either party needs any points to be clarified, they must request this within 7 days of the offer being made.

A Part 36 offer provides cost protection and strategic advantages in personal injury claims. It helps parties settle cases efficiently while avoiding expensive litigation.

What are the conditions for a valid Part 36 offer?

For a Part 36 offer to be valid under the Civil Procedure Rules, it must meet several specific conditions. These include:

• The offer must be made in writing and clearly state that it is a Part 36 offer.
• It must be clear and unambiguous and specify the terms of settlement.
• The offer must be a genuine attempt to settle the case and not made to pressure the other side.
• It must give the other party at least 21 days to consider and accept or reject the offer.
• It must state whether it covers the whole or just part of the claim and whether it accounts for any counterclaim.

Part 36 offers are considered without prejudice, except when determining costs. This means they cannot be referred to during trial, but they can be used when deciding legal fees after the trial.

If the offer is not withdrawn, it remains open for acceptance even after the expiry of the relevant period, but the cost consequences may change.

When is a Part 36 offer made?

A Part 36 offer can be made at any stage of a claim, including:

• During the pre-action stage, before issuing formal court proceedings. This can save both parties time and money in legal and court fees.
• At any time after legal proceedings have started, which can influence the opponent’s decision to settle before trial.
• A Part 36 offer can be made even after court proceedings have been issued but before the judge makes a final decision.

The Part 36 offer must remain open for at least 21 days, known as the relevant period, during which the other party can accept it without cost penalties.

Who can make a Part 36 offer?

The party making a Part 36 offer is known as the offeror, and the party receiving it is known as the offeree. If there is a legal dispute, either party can be the offeror, including:

• The claimant or the person bringing the claim on their behalf (known as a litigation friend);
• The defendant or the person or organisation defending the claim.

Either party can make a Part 36 offer at any stage of the claims process. The offer is made without any admission of liability, and its content will not be seen by the court until after a judgment is made and compensation is awarded by the judge.

The Part-36 offer encourages both parties to negotiate early in the hope of reaching a settlement as soon as possible.

What are the advantages of a Part 36 offer?

A part-36 offer can be advantageous to either side in that court hearings can be avoided, additional legal fees can be minimised, and there are tactical benefits in making a formal offer to settle prior to a court hearing.

You might receive a Part 36 offer from the defendant for several strategic reasons, including:

• They may want to settle the claim early for an amount they find reasonable and limit their financial exposure;
• By making an offer, they can avoid the costs and expenses of going to court;
• Making a Part 36 offer gives them the chance to resolve the case without the public scrutiny of a court trial;
• It might incentivise you to accept a fair settlement, reducing the uncertainty of a trial outcome;
• It can avoid the hassle of gathering more evidence and presenting additional arguments to defend the claim.

A Part 36 offer also provides several advantages for you as a claimant, including:

• You can resolve your claim without the added stress, expenses, and time associated with a trial;
• If you accept a Part 36 offer by the end of the relevant period, you can avoid incurring further legal costs;
• If you make the offer, you may encourage the defendant to settle on favourable terms to avoid the risk of a worse outcome in court;
• It gives you financial certainty and allows you to secure a fair amount of compensation;
• It allows you to access the compensation you are entitled to and move on with your life much quicker than going to court.

As settling out of court is advantageous to both parties, more than 96% of all personal injury cases are resolved without a trial.

Can I modify or withdraw my offer?

Yes, you can modify the terms of the offer or even withdraw it, but there are specific rules:

• Before the end of the relevant period, you can withdraw or vary a part of the offer to be less advantageous to the other party only with permission from the court.
• The court may give permission to withdraw or modify a Part 36 offer if it is satisfied that there has been a change of circumstances in the case justifying it.
• If the offer is not accepted within the relevant period, you can withdraw it or change the whole or part of it at any time without permission from the court. This must be done in writing, and the changes made to the offer must be clearly stated.
• If a Part 36 offer is accepted within the relevant time period, it becomes legally binding, and you cannot withdraw or change it.

If you do not serve a notice of withdrawal to the other party and the offer does not have an expiry date, they can accept it at any time.

The offeror can sometimes leave a Part 36 offer on the table, hoping that the offeree forgets about it and the case proceeds to trial, and they will then beat the offer.

However, there could be a real risk to this strategy. The offeree might not forget about it and instead accept it at a time when its terms are no longer favourable to the offeror.

Should I accept a Part 36 offer?

Many insurance companies are keen to make a Part 36 offer to resolve the dispute early and avoid further legal costs and the uncertainty of a court trial. However, there are several factors you should consider before accepting their offer:

• Whether the settlement offered is close to the compensation you are seeking and fairly reflects your damages and future financial needs;
• The strength of your case and the chances of achieving a better outcome at trial;
• The potential legal costs and expenses if you choose to go to court instead of alternative dispute resolution;
• The risk of cost consequences if you reject the Part 36 offer and fail to obtain a better result at trial;
• The additional time and emotional impact of prolonging the claim versus settling;
• You should also consider the defendant’s motivation for making the offer.

Consulting with an experienced solicitor is essential before accepting a Part 36 offer. They will know how much your claim is worth and will be able to advise on whether the defendant’s offer is fair.

What happens once I accept an offer?

A Part 36 offer can be accepted by serving a written notice of acceptance to the offeror via their legal team. Once you agree to an offer made pursuant to Part 36 of the CPR, the claim is considered settled.

If proceedings have commenced, the court will also receive notice that the case has been resolved.

The defendant is then obliged to pay the owed sum within 14 days of acceptance. Once you receive the payment, the claim is officially concluded, and you cannot take further legal action regarding the matter.

If the defendant fails to pay you on time, you may be able to enforce the payment through legal action.

What happens if I reject a Part 36 offer?

If either party rejects a Part-36 offer, the case will continue and is likely to go to court. This could result in a lower judgment than the amount offered, and additional costs are likely to be incurred.

If you receive an offer:

• If you reject a Part 36 offer from the defendant and receive a judgment of a higher value than the offer, you will not be penalised for rejecting it. In this case, the defendant will usually have to cover all the legal costs incurred.
• If you reject a Part 36 offer and receive a judgment of a lesser value, you will typically need to pay the defendant’s legal costs from when the relevant period expires.

If you make an offer:

If you make an offer and it is not accepted by the defendant, but you receive a better judgment in court, you might also get:

• An extra 10% on a payment up to £500,000;
• An extra 5% on a payment above £500,000 (up to an extra £75,000);
• Interest on the awarded amount at a rate of up to 10% above the base rate for part or all of the period after the relevant deadline has passed;
• Legal costs that are assessed on an indemnity basis from the end of the relevant period, typically leading to a higher level of recovery;
• Increased interest on those legal costs, up to 10% above the base rate.

If the defendant rejects your offer and the case is subsequently dismissed by the court, you may become liable for both parties’ legal costs.

What is the difference between Part 36 and ‘without prejudice’ offers?

Both Part 36 and ‘without prejudice’ offers are used in settlement negotiations to try and resolve a claim without going to court. However, there are a few differences between the two:

• The Part 36 offer is made under Part 36 of the Civil Procedure Rules, while ‘without prejudice’ offers are informal;
• ‘Without prejudice’ offers are not typically used as evidence in court, while Part 36 offers are referred to in court when deciding costs;
• There are no automatic penalties when rejecting a ‘without prejudice’ offer, whereas rejecting a Part 36 offer can lead to cost consequences;
• The Part 36 offer must be in writing and specify a period of no less than 21 days during which it remains open.

If you have suffered harm due to someone else’s fault and want to negotiate a settlement, your solicitor will be able to advise on which type of offer is better suited to your situation.

What types of personal injury claims can be settled with Part 36 offers?

Part 36 offers can be used to settle any personal injury claim, including:

• Road traffic accidents, whether they involve cars, pedestrians, bicycles or motorcycles;
• Workplace accidents caused by machinery, inadequate training or exposure to dangerous substances;
• Medical negligence cases involving surgical errors, misdiagnoses or medication mistakes;
• Accidents in public due to wet floors or unsafe premises;
• Criminal injury claims for injuries sustained as a result of an assault or violent crime;
• Claims for injuries caused by faulty or dangerous products;
• Fatal accident claims made by families who have lost a loved one due to negligence.

Time limits to start a compensation claim

Generally, there is a three-year limitation period for making a claim. This will start from the date of your accident or the date when you became aware of the injuries suffered (the date of knowledge).

Some exceptions do apply to the three-year time limit:

• Child injury claims can be brought by an adult at any time before the child’s 18th birthday, after which they have until 21 to start a claim themselves.
• The time limit is suspended if the claimant lacks the mental capacity to engage in litigation.
• There is a two-year time limit to claim compensation through the Criminal Injuries Compensation Authority (CICA).

Do I need a solicitor to settle my claim?

While you are not legally required to hire a solicitor to settle your claim, it can significantly improve your chances of securing the best possible outcome. An experienced solicitor can:

• Ensure you do not accept an offer that is lower than what you deserve;
• Negotiate on your behalf to secure a fair settlement;
• Handle all legal aspects of the case, including liability disputes and evidence gathering;
• Advise on whether you should accept a Part 36 offer from the defendant;
• Represent you in court if your case goes to trial.

Furthermore, all the solicitors we partner with will offer you a no win no fee service. That means you do not have to pay them anything upfront or if your claim fails.

To learn more about Part 36 offers in personal injury claims, do not hesitate to call 0800 470 0474  or request a call back for free legal advice.