Calderbank offer
A Calderbank offer is a settlement offer made on a "without prejudice save as to costs" basis.
It is an approach used to settle a dispute for a lower amount and avoid going to a court trial. It puts one side on notice that if the dispute goes before a court, and the outcome is worse than the Calderbank offer being made, the party making the Calderbank offer is entitled to higher recovery court costs, the fact the offer has been made may also be taken into account when considering the costs awarded.
Important constituents of such an offer are:
- It must be left open for acceptance for 21 days.
- It must offer to pay the other party’s reasonable costs incurred up to the point of acceptance if accepted within 21 days. Thereafter, acceptance being subject to the offeror’s costs incurred after the expiry of the 21 days being paid.
- It must say what is the position as to interest. Normally interest is included.
- It must say whether any counterclaim is taken into account in the offer.
It is named after the case Calderbank v. Calderbank in 1975. Mrs Calderbank before the dispute proceeded to the courts, showed she had a willingness to settle the dispute. If Mr Calderbank had accepted the offer made to him before the trial, he would have been in a better position because the outcome was less favourable to him than Mrs Calderbank’s earlier offer, and then neither would have had to go to court. The court ruled that Mrs Calderbank was entitled to her costs as from the date that she made her willingness to settle known.
It is an alternative to a Part 36 offer, which is a written offer to settle with a period of not less than 21 days during which it can be accepted. If it is not accepted in the stated period and the other party does not beat that offer then there will be costs consequences.
[edit] Related articles on Designing Buildings
- Adjudication.
- Alternative dispute resolution.
- Alternative Dispute Resolution legislation.
- Arbitration Act.
- Arbitration panel.
- Arbitration v Adjudication.
- Arbitration in the construction industry
- Breach of contract.
- Causes of construction disputes.
- Conciliation.
- Construction Industry Model Arbitration Rules CIMAR.
- Contract claims.
- Dispute resolution.
- Dispute resolution boards.
- Dispute resolution procedure.
- Evaluation of claims.
- Expert determination.
- Expert evaluation.
- Housing Grants, Construction and Regeneration Act.
- How does arbitration work?
- How to become an arbitrator.
- Joinder.
- Mediation.
- Part 36 offer
- Pay now argue later.
- Pendulum arbitration.
- Provisional relief.
- The role of the mediator.
- Scheme for Construction Contracts.
- Without prejudice.
Featured articles and news
A briefing on fall protection systems for designers
A legal requirement and an ethical must.
CIOB Ireland launches manifesto for 2024 General Election
A vision for a sustainable, high-quality built environment that benefits all members of society.
Local leaders gain new powers to support local high streets
High Street Rental Auctions to be introduced from December.
Infrastructure sector posts second gain for October
With a boost for housebuilder and commercial developer contract awards.
Sustainable construction design teams survey
Shaping the Future of Sustainable Design: Your Voice Matters.
COP29; impacts of construction and updates
Amid criticism, open letters and calls for reform.
The properties of conservation rooflights
Things to consider when choosing the right product.
Adapting to meet changing needs.
London Build: A festival of construction
Co-located with the London Build Fire & Security Expo.
Tasked with locating groups of 10,000 homes with opportunity.
Delivering radical reform in the UK energy market
What are the benefits, barriers and underlying principles.
Information Management Initiative IMI
Building sector-transforming capabilities in emerging technologies.
Recent study of UK households reveals chilling home truths
Poor insulation, EPC knowledge and lack of understanding as to what retrofit might offer.
Embodied Carbon in the Built Environment
Overview, regulations, detail calculations and much more.
Why the construction sector must embrace workplace mental health support
Let’s talk; more importantly now, than ever.
Ensuring the trustworthiness of AI systems
A key growth area, including impacts for construction.