Written offer could replace cash

Defendants in civil actions for damages could be allowed to make written offers of financial settlement instead of depositing cash with the court, following proposals released last week by the Lord Chancellor's Department (LCD).The suggestion came in a consultation on measures designed to reform the system of payments into court.

The LCD is promoting a streamlined method of paying-in, creating one channel for all claims whether they originate in the High Court, district registry or county court.

It also proposes allowing the use of credit cards for payments.According to the paper, the Civil Procedure Rules could be amended to allow written offers to be treated as part 36 payments, but not require the permission of the court for cost provisions to apply as is currently the case.

This would allow defendants - or in some situations, claimants - to make a written offer that would be treated in the same way as if money had been paid into court.

However, the paper said clinical negligence claims involving NHS trusts should be exempt so that 'the claimant gets the benefit of special interest from the date of the order'.The consultation strongly backed a harmonised and streamlined system for making payments, expanding the current method used in the High Court where funds are lodged directly with the Court Funds Office.

The handling of payments into court should also be reformed, it said, putting forward three options: payment by bank draft, escrow account or credit card.

'We consider that accepting payments by credit card could reduce delay where funds are immediately approved, available and transferred.'Fraser Whitehead, chairman of the Law Society's civil litigation committee, broadly welcomed the proposals as offering improved efficiencies, although he expressed concern over written offers to settle.

'Defendants should be required to find and present money to the court,' he said, pointing out that written payments could result in additional costly litigation to recover the funds.LINKS: www.lcd.gov.ukJonathan Ames