Legal issues
The offer must be in writing and make clear that it is under Part 36. It must identify its scope and treatment of any counterclaim. Ordinarily it specifies a relevant period of at least 21 days, but offers close to trial are treated differently. Fixed recoverable costs and other special regimes may alter the consequences. Do not assume every letter headed “without prejudice” is a Part 36 offer.
This guide concerns England and Wales.
For the wider service, see Civil and Commercial Disputes. Related decisions are covered in Summary judgment in business disputes and Unfair prejudice and minority shareholder remedies.
Evidence that matters
Collect the offer and proof of service, all amendments or withdrawals, the pleaded claim and counterclaim, interest calculation, costs information and trial date. Keep a record of authority to settle. If more than one director or insurer must approve the decision, arrange that process before the deadline becomes urgent.
Reasonable lines of enquiry
Compare three scenarios: accept now; accept later if still available; continue to judgment. For each, consider the payment, recoverable costs, costs you may owe, your own unrecovered fees and collectability. A nominally higher settlement figure can produce a worse net result if its costs terms differ.
What happens next
Acceptance ordinarily takes effect through written notice under the rules, not merely a telephone agreement. Late acceptance and failure to beat an offer at judgment can change costs exposure. Expiry of the relevant period does not automatically withdraw an offer. A court’s assessment of whether particular consequences would be unjust is not a safe substitute for evaluating the offer in time.
Immediate steps
Diary service, the relevant period and the trial date separately. Ask for clarification promptly if the scope is unclear. Do not communicate a binding acceptance until you understand what remains payable and which issues end. Keep settlement communications separate from documents intended for the trial judge on the merits.
What should you send us?
Send the full offer chain, statements of case, key evidence, current costs position and hearing dates. Tell us your settlement authority and whether a counterclaim or instalment proposal is involved.