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
ECA Industry Awards 2024 shortlist revealed
22 leading businesses from across the electrotechnical and engineering services sector.
Government unveils Skills England strategy
Skills England to transform opportunities and drive growth.
New Government Hub for York Given Planning Green Light
For up to 2,600 civil servants, due for completion by 2028.
Construction Skills Certification Scheme cards
July update on Professionally Qualified and Academically Qualified Person Cards.
BSRIA Briefing 2024, November 22
Sustainable Futures: Redefining Retrofit for Net Zero Living.
The CLC on driving competency in the retrofit sector
Previously published roadmap on skills for net zero.
The first labour government King's speech in fifteen years
Construction industry reactions, support and some concern.
CIOB Retrofit of Buildings Technical Information Sheet
What retrofit is, the approach to be taken and processes to be followed.
Adapting Historic Buildings for Energy and Carbon Efficiency
Historic England advice note 18, free download published.
10 retrofit projects revisited 10 years after completion.
Information orders, building liability orders and SPVs
Key BSA terms and how they impact special purpose vehicles.
Listed despite problems with its design.
Zen and the art of cycling exploration.
Design Council Homes Taskforce launched
To support government 1.5 million homes target within UK climate commitments.