Settling a Civil Court Claim

General Information

• Settlement can occur before or after proceedings
• Court expects parties to attempt settlement
• Can be done through informal discussions, ADR, mediation, or formal written offers
• Consider prospects of success, claim value, and potential costs when deciding to settle
• Seek initial legal advice if possible
• Use “without prejudice” or “without prejudice save as to costs” for settlement communications

Part 36 Offers

• Formal way to settle under Civil Procedure Rules
• Can be made by claimant or defendant
• For fast track, intermediate, multi-track claims
• Can be made before or during proceedings
• Offers financial incentives to accept
• Has implications for legal costs
• Judge unaware of offer until after judgment
• Usually gives 21 days to accept (relevant period)

Making a Part 36 Offer

1. Use Form N242A or write a clear letter
2. Mark as “without prejudice save as to costs”
3. Specify relevant period (min. 21 days)
4. Clearly state what the offer covers
5. Explain costs implications if accepted
6. If defendant, state payment will be made within 14 days of acceptance
7. Consider potential outcomes carefully

Receiving a Part 36 Offer

1. Consider offer seriously within relevant period
2. Assess claim value and acceptance threshold
3. Consider potential contributory fault
4. Seek legal advice if possible
5. Be aware of costs risks if offer rejected
6. Can accept after relevant period, but may incur additional costs
7. Use Form N242A or write clear acceptance letter