Interim Report, Table of Contents Start of this Section Previous Page Next Page Next Section Civil Justice Reform - Interim Report About CJR Citator



K7.2. Operation of Part 36 in practice

322. There appears to be little doubt that Part 36 payments and offers have been one of the most successful features of the Woolf reforms.
322.1 The Lord Chancellor's Department notes that it "has been welcomed by all interested groups as a means of resolving claims more quickly". (Note 274) While the Department recognizes that it is "extremely difficult to obtain figures on disputes where no claim is issued [and therefore] difficult to know exactly how often Part 36 has been used in cases which have not proceeded," (Note 275) reports from the legal profession indicate that it is regularly and effectively used.

322.2

This is borne out by reports published by solicitors' firms in London.
(a) Freshfields, reporting on the first year's experience of the reforms, noted :-
"Whilst Pt 36 has only been in operation for 12 months, and there have as yet been relatively few reported decisions on the application of the new rule, the preliminary indications are that Pt 36 offers are being made in practice on a regular basis (particularly by claimants). In many cases this is leading to realistic settlements being achieved well in advance of trial (and in some instances, without the need for proceedings to be commenced)." (Note 276)
(b) Writing from the perspective of personal injury insurers, Mr Geoffrey Reed notes that the flexibility of Part 36 payments and offers has been welcomed. He also notes that even the ability of claimants to make Part 36 offers has been viewed positively, such offers serving "to concentrate an insurer's mind wonderfully" and actually to "help an insurer to quantify the risk he is facing: and to assess the economics of continuing to contest the claim." He reports that "Part 36 offers from claimants have often led to an expeditious settlement." (Note 277)
(c) Mr E P Greeno of Messrs Herbert Smith, writing on the first two years' experience of the reforms, (Note 278) comments as follows :-
"Litigators have taken quickly to this innovation, particularly claimants who are likely to be in a position to make a sensible Part 36 offer shortly after commencement of proceedings (due to the increased work required under the CPR prior to proceedings being commenced). The defendant is then under pressure to accept the offer at a time when he may be much less well prepared to assess the claimant's claim accurately."
322.3 Similar rules have been adopted in New South Wales. (Note 279)
322.4 It may be noted that even Professor Zander, the arch-critic of the Woolf reforms, has expressed himself to be wholly in favour of the Part 36 procedure, regarding it as "a gain in terms of fairness" and likely to result in more early settlements. (Note 280)
323. The favourable reception of Part 36 strongly suggests that similar provisions should be adopted in Hong Kong. Readers are asked to express their views on Proposal 15.

 

Notes

274 EF, Key Findings.   <back>
275 EF, ยง4.8.  <back>
276 "The Civil Justice Reforms One Year On - Freshfields Assess their Progress" M Bramley & A Gouge (Butterworths, London 2000), p 70.  <back>
277 Geoffrey Reed, "Review of the Civil Procedure Rules from the Perspective of a Defendant Personal Injury Lawyer" [2000] JPIL 13, 16.  <back>
278 Herbert Smith, Mr E P Greeno, Commerce And Industry Group Annual Legal Update: 15th March 2001.  <back>
279 New South Wales, Supreme Court Rules 1970, see especially rr 22.2, 52 and 52A.  <back>
280 Michael Zander QC, "The State of Justice - The Hamlyn Lectures, 1999" (Sweet & Maxwell, London 2000), p 42-43.  <back>


Previous Page Back to Top Next Page
Web Accessibility Conformance