Absolutely. A party can propose settlement before litigation commences or at any during the dispute. In fact, the court actively encourages this by making early offers for settlement. In the context of TOLATA (Trusts of Land and Appointment of Trustees Act 1996), this is done through a Part 36 offer. This refers to a formal offer to settle the dispute between the parties outside of court proceedings, which is by Part 36 of the Civil Procedure Rules (CPR) for the procedure for making and accepting such offers.
A Part 36 offer in a TOLATA claim typically outlines terms for resolving the dispute, such as a proposal to buy out one party’s interest in the property, a division of the property’s proceeds upon sale, or other terms aimed at achieving a settlement.
If a Part 36 offer is made and accepted within the specified time frame, it can have significant cost consequences for both parties. For example, if a party rejects a Part 36 offer and later fails to obtain a more favourable outcome at trial, they may be required to pay the other party’s legal costs from the date the offer was made. Conversely, if a party rejects a Part 36 offer but later achieves a better outcome at trial, they may be entitled to receive enhanced costs and interest.
Parties involved in TOLATA disputes should therefore carefully consider any Part 36 offers made and seek legal advice to assess the potential implications and determine the most appropriate course of action.
