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Section 11: Sanctioned offers and payments
Proposal 15
Rules governing the making and costs consequences of offers of settlement and payments
into court along the lines of Part 36 of the CPR should be adopted.
Proposal
15 (for introducing sanctioned offers and payments along the lines of CPR 36)
The defendant's position under Order 22 should in substance be preserved, but with the
addition of the relevant ancillary provisions found in CPR 36.
While parties should be encouraged to settle their disputes by negotiation, offers made before
commencement of the proceedings should not qualify as sanctioned offers save to the extent
that a pre-action protocol which has been adopted in relation to particular specialist list
proceedings provides otherwise in respect of such specialist list proceedings.
A sanctioned offer or payment should be required to remain open for acceptance for 28 days
after it is made (such 28 day period falling before commencement of the trial), unless leave
is granted by the court for its earlier withdrawal. Thereafter, the offer could be withdrawn
and if not, would continue to be capable of acceptance.
The rules should make it clear that the court will continue to exercise its discretion as to
costs in relation to any offers of settlement which do not meet the requirements to qualify as
sanctioned offers.
The rules should make it clear that a plaintiff may qualify for an award of additional interest
along the lines of Part 36 where he makes a sanctioned offer which satisfies the prescribed
requirements, but not otherwise.
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