How Many Part 36 Offers Can Be Made?
Part 36 of the Civil Procedure Rules is designed to encourage settlement by imposing clear costs consequences on parties who fail to engage with reasonable offers to settle. A common question for practitioners and litigants alike is: how many Part 36 offers can be made in the course of a claim?
The short answer is that there is no limit. However, while multiple Part 36 offers are permitted, their use must be strategic and carefully managed to maximise their effectiveness and avoid unintended costs consequences.
This article explains how multiple Part 36 offers operate in practice, how the courts treat them, and the impact they may have on costs.
Is There a Limit on the Number of Part 36 Offers?
There is no restriction within the Civil Procedure Rules on the number of Part 36 offer that a party can make. A party may make several offers throughout the lifecycle of a claim, often involving a specified sum of money, whether to reflect changing circumstances, evolving evidence, or tactical considerations.
Each Part 36 offer must comply with the formal requirements of the rules and will be treated as a standalone offer for the purposes of costs consequences.
Importantly, making multiple offers does not dilute their effect. Instead, the court will consider each offer individually when determining whether the amount awarded by the court is more advantageous than any relevant offer.
Why Make Multiple Part 36 Offers?
There are several legitimate reasons why a party may choose to make more than one Part 36 offer during proceedings.
- To reflect new evidence or developments affecting prospects of success
- To increase pressure on the opposing party as the case progresses
- To improve cost protection by making a more realistic or commercially sensible offer
- To respond to an opponent’s refusal to engage in settlement discussions before a party ultimately accepts the offer
A revised or improved offer can strengthen a party’s position, particularly if it demonstrates a willingness to settle on reasonable terms.
Do Late Offers Replace Earlier Offers?
A key issue in practice is whether a later Part 36 offer replaces an earlier one. The answer depends on how the subsequence offer is framed.
- A new Part 36 offer does not automatically withdraw an earlier offer
- An earlier offer remains open unless expressly withdrawn
- Multiple offers can coexist, and each may carry separate costs consequences
This means that a party may have several live Part 36 offers at the same time. In such cases, the court will assess which offer is most relevant when determining costs, particularly in light of the judgment obtained.
Care should therefore be taken when making a revised offer to ensure that its intended effect is clear.
Costs Consequences of Multiple Part 36 Offers
Where multiple Part 36 offers have been made, the court will consider the full sequence of offers when making a costs order.
The key question remains whether a party has failed to obtain a judgment more advantageous than a relevant defendant’s Part 36 offer.
In practice,
- The court may assess which offer was most advantageous at the time it was made
- Costs consequences will typically run from the expiry of the relevant 21 days
- A well-judged later offer may carry greater weight than an earlier, less realistic offer
Where a claimant beats its own offer, the court may award costs on the indemnity basis, together with interest on those costs above base rate, and an additional amount calculated by applying the prescribed percentage (subject to the £75,000 cap).
Conversely, where a claimant fails to beat a defendant’s Part 36 offer, adverse costs consequences may apply from the expiry of the relevant period.
Acceptance of a Part 36 Offer
Where a Part 36 offer is accepted, the costs consequences will depend on the timing of acceptance in relation to the relevant 21-day period.
If a party accepts the offer within the relevant period, the receiving party will generally be entitled to its costs on the standard basis up to the date of acceptance. This reflects the principle that a party who makes a reasonable offer to settle should not be penalised where that offer is accepted promptly.
However, where a Part 36 offer is accepted after the expiry of the relevant period, the position changes. In such circumstances, the receiving party will usually be entitled to costs up to the expiry of the relevant period, while the opposing party will be entitled to its costs from the date of expiry to acceptance.
The court retains discretion in determining costs where an offer is accepted out of time, but the general rule is that delay in accepting a reasonable offer may carry adverse costs consequences.
Strategic Considerations
Although there is no limit on the number of Part 36 offers that may be made, their effectiveness depends on timing, realism, and clarity.
Repeatedly making unrealistic offers is unlikely to assist a party’s position and may undermine credibility. By contrast, carefully calibrated offers, made at appropriate stages of the litigation, can significantly strengthen a party’s costs protection.
Parties should also consider whether to withdraw or vary earlier offers, particularly where a revised offer is intended to supersede a previous position.
How Greener Costs Can Help
Navigating Part 36 offers requires a more than basic understanding of the rules. The timing, structure, and value of each offer can have a significant impact on costs recovery and overall litigation strategy.
At Greener Costs, we provide specialist advice on the strategic use of Part 36 offers, including when to make multiple offers, how to structure them effectively, and how to maximise costs protection. We also assist in assessing the risks associated with accepting or rejecting an offer, ensuring that clients are fully informed of the potential costs consequences.
Our team supports solicitors and litigants throughout the lifecycle of a claim form, from early-stage strategy through to detailed costs assessment. Whether you are seeking to apply pressure through a well-pinched offer or protect your position against adverse cost orders, we offer clear, commercially focused guidance tailored to your case.
If you require expert advice on Part 36 or any aspect of civil litigation costs, Greener Costs is here to assist. Contact our team today via our enquiry form or email info@greenercosts.co.uk to discuss how we can support your case.
We're here to support your business
Contacting us is free. It's our goal to put you at ease and offer expert advice on Bill of Costs, Costs Budgets and Costs Drafting
4 Bark Street East, Bolton, BL1 2BQ
01204 263047
info@greenercosts.co.uk