Define exactly what is being settled
Identify the claim, counterclaim, issue, party and remedy covered by the offer. Where proceedings involve several heads of loss, multiple defendants or non-monetary relief, state the scope clearly. An ambiguous offer may generate a later dispute about whether acceptance concluded the whole claim or only one component.
Prepare a schedule showing the amount claimed, payments, interest, costs already incurred and the commercial assumptions behind the offer. The formal offer does not need to reproduce every internal calculation, but the decision-maker should understand the exposure.
Check the formal requirements
Use the current wording required by Part 36, state the relevant period, explain whether the offer relates to the whole or part of the claim and address counterclaims where applicable. Check the special rules that may apply to personal injury, future loss or other categories rather than using one generic template.
Record the date and method of service because the relevant period and later consequences depend on a reliable timeline. Keep the signed final document and the complete transmission record.
Understand the relevant period
The relevant period is central to acceptance and costs. Calendar its start and end using the actual service method and current rule. Do not describe an arbitrary business deadline as the Part 36 relevant period. If a hearing or trial is close, check the timing and any need for permission or court consideration.
A party evaluating an offer should compare the deadline with disclosure, expert evidence, witness statements, mediation and trial preparation. The information available may change materially during the period.
Acceptance, withdrawal and change
Check how acceptance must be communicated, whether the offer is still open and whether any notice of withdrawal or change has been served. A private note that the offer is withdrawn does not communicate that position to the other party. Preserve every version and notice.
Where an offer is improved, reduced or otherwise changed, identify which version remains operative and from what date. Avoid informal correspondence that accidentally contradicts the formal terms.
Costs consequences and risk assessment
Costs consequences depend on who made the offer, the eventual judgment, timing and whether the court considers it unjust to apply the usual consequences. The comparison must use the actual judgment and offer terms rather than a headline figure alone. Interest, costs and non-monetary outcomes may matter.
Prepare a decision record with best case, realistic case and downside scenarios. Include legal costs, disbursements, enforcement risk, delay and ability to pay. The purpose is not to guarantee an outcome but to make the settlement choice transparent.
Final document review
Verify the court, claim number, parties, amount, currency, scope, relevant period, payment timetable and service details. Ensure that references to costs and interest are internally consistent and that confidential or without-prejudice correspondence is handled correctly.
After service, update the case calendar and preserve proof. If accepted, record payment and procedural steps needed to conclude or stay the proceedings. If not accepted, retain the offer for the later costs stage.
Frequently asked questions
Is every settlement offer a Part 36 offer?
No. Part 36 has specific formal and procedural requirements. Other offers may still be relevant but do not automatically receive the same regime.
Can a Part 36 offer be withdrawn?
The rules govern withdrawal and change. Use a clear formal notice and check timing rather than relying on an internal decision or informal message.
Does beating an offer always produce the usual costs result?
The rule sets presumptive consequences, but the precise comparison, timing and the court's assessment of injustice remain important.
Prepare before acting
- Identify the exact claim, issue, party and remedy covered.
- Check the current Part 36 formal wording and any special rule.
- Calculate and calendar the relevant period from reliable service evidence.
- Keep every version, withdrawal, change and acceptance notice.
- Model the realistic judgment and costs scenarios.
- Check interaction with counterclaims, interest and non-monetary relief.
- Verify all figures, names, dates and payment terms.
- Preserve proof of service and update the procedural calendar.
Legal and procedural foundation
- Civil Procedure Rules Part 36
- Civil Procedure Rules
- Practice Direction 44 — General rules about costs
Forms, deadlines, fees, filing and service requirements must be checked against the current official material and the circumstances of the particular matter.
Verify the current position
Links lead to the material used to structure this publication.