Settlement

Part 36 relevant period

At least 21 days

Part 36 offer by defendant

Must offer a single sum of money

Defendant payment after acceptance

Must pay within 14 days

N242A

Part 36 offer form

Clarification of Part 36 offer

Offeree may request clarification within 7 days of service

Part 36 clarification deadline

7 days

Withdrawal of Part 36 offer during relevant period

Offeror needs court permission if acceptance notice has been served

Application to withdraw/change offer

Within 7 days

Part 36 acceptance payment deadline

14 days

Defendant rejects claimant's Part 36 offer and claimant beats it at trial

Defendant faces enhanced sanctions

Part 36 enhanced interest on damages

Up to 10% above base rate

Part 36 indemnity costs

Awarded from expiry of relevant period

Part 36 interest on costs

Up to 10% above base rate

Part 36 additional amount

10% of first £500,000 and 5% above that

Part 36 additional amount cap

£75,000

Indemnity costs

More generous recovery than standard basis costs

Standard basis costs

Only reasonable and proportionate costs recovered

Tomlin order

Consent order staying proceedings on agreed terms

Tomlin order enforcement period

6 years

Fixed Recoverable Costs (FRC)

Fixed costs regime for certain claims

Part 36 consequence under FRC

35% uplift instead of indemnity costs

FRC Part 36 uplift

35% of difference between fixed costs at expiry of relevant period and judgment

Part 36 memory aid

21-14-7

(Relevant Period → Payment → Clarification)

Part 36 claimant beats own offer

Interest + Indemnity Costs + Interest on Costs + Additional Amount

Additional amount memory aid

10% then 5%, capped at £75,000

Tomlin order memory aid

6 years

FRC memory aid

No indemnity costs, 35% uplift instead