Can anyone explain the heading on a letter my husband received today from Reed Smith Warner Cranston (the solicitors acting on behalf of the Halifax). PART 36 OFFER - WITHOUT PREJUDICE SAVE AS TO COSTS.

The letter reads as follows (sorry scanner not working)

We have received from the court a copy of you purported Defence and part admissio to our clients claim. Your will now have been notified by the Court that our client does not accept your part admission in the sum of £800 and intends to proceed with its claim against you for the full outstanding debt. ( on two occasions the halifax have said they will only chase for 50% of claim) We have advised our client that there are no grounds raised by ou that amount to a Defence to our claim. Our client therefore intends to issue Summary Judgment Application shortly, requesting that the Court enters Judgment for the full sum. (What is a Summary Judgment). However in an effort to settle this matter prior to the hearing of its Application our client has instructed us that it would like to make the following offer:

Our client is willing to accept payment of £5,000 in full and final settlement of its claim against you. This sum is inclusive of interest. ( we can only just scrape together the original offer of £800, which we have increased to £1000).

This offer will remain open for the next 21 days i.e. until 27th November 2002. You may only accept this offer after his date if we agree liability for costs or the Court gives permission.

The last paragraph I do not fully understand.

Any help

-- Christine Singleton (Middleforth1@aol.com), November 09, 2002

Answers

What they are saying is that they will not accept less than £5000 if you accept this by 27th November. If you accept this offer by that date, you will not have to pay any more. If you accept the offer after that date, they will only go through with it if you pay costs in addition or if the court allows them to accept the offer once they have issued proceedings against you.

Thw without prejudice bit allows them to make this offer but still retain the full right to sue you for the ful amount if the offer fails. The "save as to costs" means that their costs which they would seek in a court action are excepted from the without prejudice offer, but since the offer is a full and final settlement, it would appear that they are not seeking costs from you if you accept the offer by the due date, but they will after that date.

-- David J. Button (davidjohnbutton@supanet.com), November 09, 2002.