Part 36 offer
Any party may make an offer to settle at any stage in legal proceedings in whatever way it wants. When making costs orders, the court must have regard to any payment into court or admissible offer to settle that is drawn to its attention
However, an offer made in accordance with the requirements of CPR 36 can have particularly significant financial consequences; for example, if a claimant does not accept a defendant’s Part 36 offer and then fails to beat it (i.e. obtains judgment for an amount less than or equal to the offer). Unless the court considers it unjust, the court will order the claimant to pay the costs subsequently incurred by the defendant and interest on those costs. Making a Part 36 offer is, therefore, one of the most important tactical steps parties can take. It focuses the opponent’s mind on settlement and, if settlement is not achieved, may protect the offeror’s position on costs
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