Part 36: why interest matters

• The importance of ensuring that an offer incorporates the formal requirements of Part 36 in order for it to be valid and for the necessary cost consequences to apply.

Part 36 of the Civil Procedure Rules is a self-contained set of rules designed to encourage both the claimant and defendant to settle the claim outside of court. Part 36 offers will attract cost consequences for the offeree if he rejects the offer but subsequently fails to do better than that offer. It is therefore extremely important that any party seeking to take advantage of the relevant cost consequences should ensure that its offer strictly complies with the formal requirements under Part 36. One of the mandatory requirements under Part 36 is that the offer must be inclusive of interest. However, the interest requirement was recently challenged in King v City of London [2019] EWC Civ 2266.

Relevant rules

Part