Settlement - how to stop proceedings? N242A or N244?

[Leaglet]

Hello,

I submitted a claim against a ltd company for a breach of contract. The company has offered a settlement that accounts for all issues (the claim and their own counterclaim) and includes the provision of costs for the claim fee. We have received and accepted this offer in writing.

What happens now? The company is unsure as well, and neither of us know whether to submit a consent order asking for discontinuance based on settlement via N244 or to submit an N242A as a Part 36 offer and acceptance. I tried to research what to do next but the majority of websites suggest that discontinuance consent orders for settlement should only be undertaken by a solicitor.

The other issue is of course whether there are any associated fees. I know that the N244 consent order would include a fee of £108, but would an N242A require any payment of fee and allow the proceedings to be considered as settled?

Any information, links, or any suggestions for reading are appreciated - many thanks.

[R0b]

Form N242A is the formal document used by one party to make a Part 36 offer in according with Part 36 rules and I can't see how can be used in your case. The ltd co. has made an offer which you have accepted so that's it, you have settled on those terms whatever they are.

You haven't told us what stage proceedings are and if the case has been allocated to a track but as a general point it used to be the case when a claim was allocated to small claims and a date for the hearing was set, you could inform the court and they would just remove it from the list. However you may be required by some courts to submit a formal N244 application with a consent order the court can rubber stamp or to discontinue the claim.

If you have already settled for an amount which didn't include the application fees for the consent order, then you aren't able to claim that from the ltd co since you have already agreed terms of settlement. Either you suck up that fee or both sides agree to inform the court and discontinue each of the claims.

[Leaglet]

Form N242A is the formal document used by one party to make a Part 36 offer in according with Part 36 rules and I can't see how can be used in your case. The ltd co. has made an offer which you have accepted so that's it, you have settled on those terms whatever they are.

You haven't told us what stage proceedings are and if the case has been allocated to a track but as a general point it used to be the case when a claim was allocated to small claims and a date for the hearing was set, you could inform the court and they would just remove it from the list. However you may be required by some courts to submit a formal N244 application with a consent order the court can rubber stamp or to discontinue the claim.

If you have already settled for an amount which didn't include the application fees for the consent order, then you aren't able to claim that from the ltd co since you have already agreed terms of settlement. Either you suck up that fee or both sides agree to inform the court and discontinue each of the claims.

Apologies for not providing you with enough information:

• The case has been allocated to small claims track
• The hearing has been set for a date next month but neither party has paid the trial fee yet
• Offer includes the defendant discontinuing the counterclaim and settling for a monetary amount for % of the claim, as well as the £500 fee incurred for submitting the claim with the court

Thank you for clarifying, that's been very helpful.

Could I please ask one final question: since it looks like the N244 application is the only way to settle and discontinue proceedings, should I ask the opposing party to send a letter consenting to the offer (including itemising the settlement and what is offered/accepted) and then ask for discontinuance in the N244?

Edit: or should I be seeking adjournment by consent since that would mean neither party would be liable for the £108 fee to submit an application notice with consent?

[R0b]

I would suggest you email the court who will be hearing the trial and make sure to put the party names, case number and date of the hearing including the time in the subject line. Copy in the defendant on the email too and explain that the parties have now agreed terms of settlement please can they remove the hearing from the list as it is no longer required and ask the court to confirm by return.

Either they will say that is fine or that you need to make a formal application. However, if the terms of settlement says the defendant will discontinue, then you can suggest they do that without having to spend a penny more and then you do the same.