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
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.
70+ experts appointed to public sector fire safety framework
The Fire Safety (FS2) Framework from LHC Procurement.
Project and programme management codes of practice
CIOB publications for built environment professionals.
The ECA Industry Awards 2024 now open !
Recognising the best in the electrotechnical industry.
Sustainable development concepts decade by decade.
The regenerative structural engineer
A call for design that will repair the natural world.
Buildings that mimic the restorative aspects found in nature.
CIAT publishes Principal Designer Competency Framework
For those considering applying for registration as a PD.
BSRIA Building Reg's guidance: The second staircase
An overview focusing on aspects which most affect the building services industry.
Design codes and pattern books
Harmonious proportions and golden sections.
Introducing or next Guest Editor Arun Baybars
Practising architect and design panel review member.
Quick summary by size, shape, test, material, use or bonding..