Part 36 – Payments into Court to Support Offers under Part 35 and under Court Order

Scope of this Part

36.1

1. This Part deals with payments into court made –
   1. in accordance with an order of court;
   2. to support a defence of tender; and
   3. to support an offer of payment under Part 35.
2. A defendant is not obliged to make a payment into court to support an offer under Part 35.
3. With the –
   1. agreement of the claimant; or
   2. permission of the court; a defendant may pay money in support of an offer of payment into an interest bearing account on such terms as to the –
      1. names of the account holders; and
      2. terms on which money may be paid out of the account as may be ordered by the court or agreed between the parties.

Payments into court to support offers to settle

36.2

1. A defendant who offers to settle the whole or part of a claim may pay money into court in support of the offer.
2. A defendant may not pay money into court unless the –
   1. defendant certifies that such payment is in support of an offer to settle;
   2. payment is made to support a defence of tender; or
   3. payment is made under a court order.
3. A payment into court may not be made until a claim is issued.
4. A payment into court to support an offer may be made –
   1. when the offer is made; or
   2. at any time while the offer is outstanding.
5. A defendant who pays money into court must –
   1. serve notice of payment on the claimant; and –
   2. file a copy of the notice with a statement of the date (if any) by which the offer is open for acceptance under rule 35.9 (1).

 Right to payment out on acceptance of offer

36.3

1. The general rule is that a claimant who accepts an offer to settle –
   1. within the period stated; or
   2. where no period is stated; for accepting it in the defendant’s offer is entitled to payment of the sum which the defendant paid into court to support the offer, without needing a court order.
2. To obtain payment, the claimant must file a request for payment certifying that the offer has been accepted in accordance with para­graph (1) (a) or (b).
3. The general rule is qualified by rule 36.4.

Cases where payment out requires court order

36.4

1. If a claimant accepts money paid into court –
   1. after the end of the period stated for accepting it;
   2. by one or more, but not all, of a number of defendants;
   3. to settle a claim to which –
      1. Part 23 (claims by minors and patients); or
      2. rule 36.7 (proceedings under Fatal Accidents Acts) apply; or
   4. with a defence of tender before claim; the money in court may only be paid out under an order of the court.
2. An order under paragraph (1) (c) may not be made by consent.
3. If –
   1. a claimant accepts money paid into court after the trial has begun; and
   2. all further proceedings on the claim or that part of it to which the acceptance relates are stayed; the money in court may only be paid out under a court order.
4. An order under this rule must deal with the costs of the proceedings which have been stayed.

 Money paid into court under order

36.5

1. When a party makes a payment into court under a court order that party must give notice of the payment to every other party.
2. Money paid into court under a court order may not be paid out unless the court gives permission.
3. Paragraph (2) does not apply where –
   1. the money is paid into court by a defendant;
   2. in accordance with rule 36.6 (2) that defendant chooses to treat the money paid into court as if it were payment into court in support of an offer to settle; and
   3. the claimant accepts the offer to settle.

Money paid into court as condition for permission to defend or to continue to defend

36.6

1. This rule applies where the court makes an order permitting a defen­dant to –
   1. continue to defend; or
   2. defend; on condition that the defendant makes a payment into court.
2. If –
   1. a defendant makes such a payment into court; and
   2. makes an offer to settle (whether before or after the order to pay money into court); the defendant may choose to treat the whole or any part of the money paid into court as if it were a payment into court made in support of the offer to settle.
3. To do this the defendant must –
   1. file a notice that the defendant so chooses; and
   2. serve a copy of it on every other party to the proceedings.

Proceedings under Fatal Accidents Acts

36.7

1. If a single sum of money is paid into court in satisfaction of proceed­ings arising under a Fatal Accidents Act and that sum is accepted, the court must apportion that sum between the different causes of action when –
   1. giving directions under rule 23.13; or
   2. authorising its payment out of court.
2. If in proceedings arising under a Fatal Accidents Act a claim is made by more than one person and a single sum of money is paid into or apportioned by the court to the cause of action under the Act and is accepted by such persons, the court must apportion the payment between those persons.