the new Part 36: no payment required!

Whilst it may seem scarcely believable to some, solicitors and their clients have a duty to help the court deal with cases 'justly'.

This rather tactile approach to litigation entails dealing with cases in proportion to their value and trying to save the parties unnecessary expense. In practice this means that more solicitors will be talking about a 'reasonable' approach to disputes and discussing the need to consider settlement through alternative means of dispute resolution such as mediation rather than ploughing onto court.

But court proceedings can be necessary in the tough world of construction, and there is a procedure that can combine the iron fist with velvet gloves. This is the offer to settle litigation enshrined in Part 36 of the Civil Procedure Rules. A Part 36 offer set at an honest and realistic level that reflects the true value of the claim is not only an excellent tool of dispute resolution but substantially shifts the risk of continued litigation onto the opponent in respect of future costs liability and penalty interest.

Furthermore, this procedure has recently become easier by removing the need to physically deposit money in court, which proved a significant waste of resources if the offer was not accepted. Moreover, Part 36 offers can be made easily before the start of a case, and cases do not even have to go to trial for the consequences to bite. Any judgment will do.

It is always best to negotiate from a position of strength and this is one of the most powerful tools in that armoury.

For further information please contact Richard Wade on 01865 254244 or email richard.wade@bllaw.co.uk