Anna Pertoldi & Maura McIntosh explain why it pays to keep a close eye on Part 36 offers
Earlier this summer the Court of Appeal handed down a significant judgment relating to offers to settle made under Pt 36 of the Civil Procedure Rules (the joined appeals of Gibbon v Manchester City Council and LG Blower Specialist Bricklayer Limited v Reeves [2010] EWCA Civ 726, [2010] All ER (D) 218 (Jun). The court held that, contrary to normal contractual principles, a Pt 36 offer may remain open for acceptance even if it has previously been rejected or the offeror has made a subsequent offer in different terms.
As a result of the decision, parties need to review any Pt 36 offers previously made which they no longer wish to keep on the table. If there is any uncertainty, offers should be expressly withdrawn or varied. A failure to do so may mean that, in the eyes of the court, all offers remain on the table.
The judgment has also sought to
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