Common sense interpretation of Part 36 offers

In any litigation, considering offers of settlement is crucial. If you make an offer under part 36 of the Civil Procedure Rules and your opponent does not accept it but then fails to obtain a more (or equally) advantageous outcome at trial, you are likely to be awarded your costs. For a claimant, this can include indemnity costs and enhanced interest on those costs. Failure to make or accept a reasonable Part 36 offer of settlement at an appropriate time can therefore have serious costs consequences.

But, can a defendant be a claimant under Part 36 so as to benefit from the enhanced costs (and interest) provisions? Also, can a Part 36 offer be withdrawn by implication? The courts have answered both questions in the affirmative in the cases of AF v BG and Whitstance v Valgrove Ltd. Wragge & Co's dispute resolution experts review the decisions.