THE NEW PART 36 PART 2: OTHER EFFECTS OF ACCEPTING A PART 36 OFFER

This is the second part of a series dealing with the new provisions of Part 36 which comes into force on the 6th April 2015. The first in the series can be found here. Here we look at the new rule 36.14  dealing with the other effects of accepting a Part 36 offer.

CPR 36.14

This section deals with the practical procedural consequences of accepting a Part 36 offer.

THE MAIN TERMS

  • If the offer relates to the whole claim, the acceptance imposes a stay upon the terms of the offer.
  • If the offer is in relation to part of the claim the claim is stayed only in relation to that part.
  • If approval of the court is needed then the Part 36 stay only comes into effect when approval is given.
  • The stay does not affect the power of the court to enforce the Part 36 offer or deal with any question of costs or interest in relation to the proceedings.
  • The sum must be paid within 14 days of the date of acceptance.
  • In provisional damages or periodical payment cases the payment should be made within 14 days of the court order.

IF PAYMENT IS NOT MADE

If payment is not made then the claimant may enter judgment for the unpaid sum.

IF THE OFFER IS NOT FOR A SUM OF MONEY

If the offer is not for a sum of money and a party alleges that an offer has been accepted but not honoured then taht party can apply to enforce the terms of the offer without the need for a new claim.

THE RULE

Other effects of acceptance of a Part 36 offer
36.14.—(1) If a Part 36 offer is accepted, the claim will be stayed.
(2) In the case of acceptance of a Part 36 offer which relates to the whole claim, the stay
will be upon the terms of the offer.
(3) If a Part 36 offer which relates to part only of the claim is accepted, the claim will be
stayed as to that part upon the terms of the offer.
(4) If the approval of the court is required before a settlement can be binding, any stay
which would otherwise arise on the acceptance of a Part 36 offer will take effect only when
that approval has been given.
(5) Any stay arising under this rule will not affect the power of the court—
(a) to enforce the terms of a Part 36 offer; or
(b) to deal with any question of costs (including interest on costs) relating to the
proceedings.
(6) Unless the parties agree otherwise in writing, where a Part 36 offer that is or includes
an offer to pay or accept a single sum of money is accepted, that sum must be paid to the
claimant within 14 days of the date of—
(a) acceptance; or(b) the order when the court makes an order under rule 41.2 (order for an award of provisional damages) or rule 41.8 (order for an award of periodical payments),unless the court orders otherwise.

(7) If such sum is not paid within 14 days of acceptance of the offer, or such other period
as has been agreed, the claimant may enter judgment for the unpaid sum.
(8) Where—
(a) a Part 36 offer (or part of a Part 36 offer) which is not an offer to which paragraph
(6) applies is accepted; and
(b) a party alleges that the other party has not honoured the terms of the offer,
that party may apply to enforce the terms of the offer without the need for a new claim.”

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: