Part 36: Example of a claimant's offer to settle (with drafting notes)

This letter (with integrated drafting notes) is an example of a claimant's Part 36 offer to settle its claim. It can be used as an offer to settle after proceedings have commenced or as a starting point for drafting a pre-action offer to settle a dispute.

A claimant's Part 36 offer can be an effective way to put pressure on the defendant to settle the matter sooner rather than later, in light of the potential consequences (indemnity costs or a 35% uplift on some of the claimant's fixed costs where the extended fixed recoverable costs regime applies, interest on those costs and on the amount awarded, and the additional sanction of 10% of the amount awarded or the costs up to a maximum of £75,000) if the defendant does not accept the offer and the claimant goes on to obtain a judgment that is at least as advantageous to the claimant as the proposals contained in the claimant's Part 36 offer.