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36.22.—(1) In this rule and rule 36.11—
(a)“the 1997 Act” means the Social Security (Recovery of Benefits) Act 1997;
(b)“the 2008 Regulations” means the Social Security (Recovery of Benefits)(Lump Sum Payments) Regulations 2008;
(c)“recoverable amount” means—
(i)“recoverable benefits” as defined in section 1(4)(c) of the 1997 Act; and
(ii)“recoverable lump sum payments” as defined in regulation 1 of the 2008 Regulations;
(d)“deductible amount” means—
(i)any benefits by the amount of which damages are to be reduced in accordance with section 8 of, and Schedule 2 to the 1997 Act (“deductible benefits”); and
(ii)any lump sum payment by the amount of which damages are to be reduced in accordance with regulation 12 of the 2008 Regulations (“deductible lump sum payments”); and
(e)“certificate”—
(i)in relation to recoverable benefits, is construed in accordance with the provisions of the 1997 Act; and
(ii)in relation to recoverable lump sum payments, has the meaning given in section 29 of the 1997 Act, as applied by regulation 2 of, and modified by Schedule 1 to, the 2008 Regulations.
(2) This rule applies where a payment to a claimant following acceptance of a Part 36 offer would be a compensation payment as defined in section 1(4)(b) or 1A(5)(b) of the 1997 Act.
(3) A defendant who makes a Part 36 offer must, where relevant, state either—
(a)that the offer is made without regard to any liability for recoverable amounts; or
(b)that it is intended to include any deductible amounts.
(4) Where paragraph (3)(b) applies, paragraphs (5) to (9) will apply to the Part 36 offer.
(5) Before making the Part 36 offer, the offeror must apply for a certificate.
(6) Subject to paragraph (7), the Part 36 offer must state—
(a)the gross amount of compensation;
(b)the name and amount of any deductible amounts by which the gross amount is reduced; and
(c)the net amount of compensation.
(7) If at the time the offeror makes the Part 36 offer, the offeror has applied for, but has not received, a certificate, the offeror must clarify the offer by stating the matters referred to in paragraph (6)(b) and (c) not more than 7 days after receipt of the certificate.
(8) For the purposes of rule 36.17(1)(a), a claimant fails to recover more than any sum offered (including a lump sum offered under rule 36.6) if the claimant fails upon judgment being entered to recover a sum, once deductible amounts identified in the judgment have been deducted, greater than the net amount stated under paragraph (6)(c).
(Section 15(2) of the 1997 Act provides that the court must specify the compensation payment attributable to each head of damage. Schedule 1 to the 2008 Regulations modifies section 15 of the 1997 Act in relation to lump sum payments and provides that the court must specify the compensation payment attributable to each or any dependant who has received a lump sum payment.)
(9) Where—
(a)further deductible amounts have accrued since the Part 36 offer was made; and
(b)the court gives permission to accept the Part 36 offer,
the court may direct that the amount of the offer payable to the offeree shall be reduced by a sum equivalent to the deductible amounts paid to the claimant since the date of the offer.
(Rule 36.11(3)(b) states that permission is required to accept an offer where the relevant period has expired and further deductible amounts have been paid to the claimant.)]
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