Party Wall Etc Act 1996 and Part 36. The Facts.

Part 36 of the Civil Procedure Rules (CPR) is primarily related to the settlement of claims in civil litigation and may not be directly applicable to the Party Wall etc Act 1996. However, there could be instances where parties involved in a dispute under the Party Wall Act might consider using Part 36 as a means of settlement. Here’s a general overview:

1. Negotiation and Settlement:
   • The primary purpose of Part 36 is to encourage parties to settle their disputes without going to trial. This can involve making a formal offer to settle the matter.
2. Making a Part 36 Offer:
   • If a party subject to the Party Wall Act dispute wants to settle the matter, they can make a Part 36 offer to the other party.
   • This offer can specify the terms of settlement, and if the offer is accepted by the other party, it can result in a legally binding agreement.
3. Costs Implications:
   • Part 36 offers also have cost implications. If a party rejects a reasonable Part 36 offer and doesn’t perform better at trial, they may be liable for additional costs.
   • This cost consequence is designed to incentivize parties to seriously consider reasonable settlement offers.
4. Expert Advice:
   • When considering the use of Part 36 in the context of the Party Wall Act, it’s crucial to seek legal advice. The specific circumstances of the dispute and the legal intricacies of both Part 36 and the Party Wall Act need to be taken into account.
5. Mediation and Alternative Dispute Resolution (ADR):
   • In addition to Part 36, parties involved in a Party Wall Act dispute may also explore mediation or other forms of alternative dispute resolution to find an amicable resolution.

Remember that the application of Part 36 to a Party Wall Act dispute may not be straightforward, and it’s essential to seek advice from a legal professional familiar with both areas of law to ensure that any offers or negotiations comply with the relevant legal requirements.

Let’s delve into a more detailed explanation of how Part 36 of the Civil Procedure Rules (CPR) might be considered or used in the context of a dispute arising under the Party Wall etc Act 1996.

1. Understanding Part 36:
   • Part 36 is a mechanism designed to encourage parties to settle disputes by making offers or payments, and it outlines the potential costs consequences if a party rejects a reasonable offer and later fails to achieve a better result at trial.
   • The primary focus of Part 36 is on the resolution of civil litigation matters, and its application to non-litigious disputes, such as those arising under the Party Wall Act, requires careful consideration.
2. Settlement Offers under Part 36 in a Party Wall Dispute:
   • Parties involved in a dispute governed by the Party Wall Act may choose to use Part 36 as a framework for making settlement offers.
   • For instance, a property owner seeking to undertake construction work covered by the Party Wall Act might make a Part 36 offer to their neighbor, proposing specific terms of settlement to avoid the need for further legal proceedings.
3. Costs Implications:
   • One of the key features of Part 36 is the potential costs implications for the parties involved. If a reasonable Part 36 offer is rejected and the offering party later obtains a judgment that is as good as or better than the rejected offer, the rejecting party may be liable for enhanced costs.
   • In the context of Party Wall Act disputes, this cost consequence could be a powerful incentive for parties to seriously consider and engage in settlement discussions.
4. Legal Advice:
   • Before making or responding to a Part 36 offer in the context of a Party Wall Act dispute, parties should seek legal advice. This ensures that any offers made or responses given align with the specific requirements of both Part 36 and the Party Wall Act.
5. Alternative Dispute Resolution (ADR):
   • Alongside Part 36, parties in a Party Wall Act dispute might explore alternative dispute resolution methods such as mediation. Mediation can provide a structured and facilitated process for negotiations, potentially leading to a mutually acceptable resolution.
6. Court Approval:
   • If parties reach a settlement through Part 36 negotiations, it may still be subject to court approval, especially if legal proceedings have already commenced.

In summary, while Part 36 is primarily designed for civil litigation, creative and careful use of its principles can potentially be applied to Party Wall Act disputes to encourage settlement and manage costs. However, such an approach should be undertaken with a clear understanding of both areas of law and in consultation with legal professionals experienced in construction and civil litigation matters.

If you have any queries or wish to discuss the Act and how it effects you please don’t hesitate to get in touch. Here at PWS Surveyors Limited, we are always happy to help.