Saturday, March 3, 2007

Changes to CPR Parts 36 and 14

The other day we gave notice of changes to CPR Parts 14 and 36 which will come into force on 6 April 2007. Here is some further information.

CPR Part 36: Payments into court and offers to settle
As from 6 April 2007 defendants will no longer be required to make payments into court to obtain the costs benefits of Part 36 provided the proposal: is in writing; specifies it is open for acceptance for at least 21 days; is called a Part 36 offer; and refers to which aspect of the claim it is made and whether it includes any counter-claim. The new Rules are different in that: the defendant no longer has to make a payment into court following service of proceedings; a Part 36 offer can be stated to be open for acceptance for more than 21 days; it cannot be withdrawn or varied prior to expiry without the court's’s permission; and it must state payment will be made within 14 days of acceptance if it is to be treated as a valid Part 36 offer.

Withdrawal of Part 36 offer
The Part 36 offer can be withdrawn after the 21-day acceptance period (or such other period as the offer is stated to be open for acceptance) in writing without recourse to the court. The automatic Part 36 cost consequences cannot be assumed with a withdrawn offer although the court may use its overriding discretion. A new Part 36 offer will not extinguish a defendant's’s previous Part 36 offer. Should circumstances change, for example the defendant obtains more favourable evidence and a reduced offer is made, the previous (higher) offer must be withdrawn in writing to avoid it remaining open for acceptance. A Part 36 offer is treated as being made when it is served on the recipient of the offer rather than when it is received.

Before making a Part 36 offer the maker of the offer must apply for a Certificate of Recoverable
Benefits and the Part 36 offer must set out the gross compensation, the name and amount of deductible benefits which will be taken from that gross sum and the net amount of compensation to the recipient of the offer following deduction of the benefits. If a CRU Certificate is awaited the maker of the offer must provide these details within 7 days of receipt of the Certificate.

Costs consequences
A major change is that the claimant will get costs benefits if at trial he matches his previous Part 36 offer, he need not beat it. In addition the revised provisions assume with such a win a claimant is entitled to interest and costs on an indemnity basis unless the court considers it would be “unjust in all the circumstances of the case” (the previous provision only said the court may order interest and indemnity costs).

Changes to CPR Part 14: Pre-Action Admissions
As from 6 April 2007 a claimant may, after commencement of proceedings, apply for judgement on a defendant's’s pre-action admission provided the admission was: in writing; made after 06.04.07 and made following receipt of a Letter of Claim, or if before, stated to be a Part 14 admission. The new provisions will prevent such a pre-action admission being withdrawn prior to service of proceedings unless the claimant agrees. Following service of proceedings a defendant will have to obtain the parties’ consent or the court's’s permission to resile from its pre-action admission.


Young Students Against Racism said...

Thank you for kindly signing and circulating the following Online Downing Street Petition to all of your friends , families, media contacts , colleagues , members , activists and supporters.

Thank You,

Young Students Against Racism

Anonymous said...

The Amendments seem logical and sensible - wait that can't be right it's the CPR after all!

If only the CPR and PAP could have been introduced right in the first place - or not at all, is the system really any better than before.

Same old meat, different gravy.