An open offer is a formal proposal made during financial remedy proceedings that can be shown to the court. Unlike “without prejudice” offers, open offers will be presented to the judge. They are typically made after the Financial Dispute Resolution (FDR) hearing and can affect cost orders if one party is found to be unreasonable. Making a well-timed and fair open offer is a strategic move that can help resolve disputes and avoid unnecessary litigation.
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In recent years, there has been a clear change in the family court to give more weight to open offers, particularly those made early in the process.
On July 6, 2020, the revised FPR 9.27A entered into force, requiring parties to make open offers within 21 days following an FDR or 42 days before the final hearing if no FDR has taken place.
As open offers are shown to the court, the party making the offer must be committed to it. They cannot simply withdraw it and then seek to receieve more or pay less.
If open offer is not accepted, it can be revealed at court and the judge may be asked or make a costs order against the spouse who refused the offer, on the basis that they have unnecessarily dragged out the litigation by failing to accept a reasonable settlement. For example, in HO v TL [2023] EWFC 215, Mr Justice Peel made an adverse costs order against the wife for failing to negotiate reasonably, and she was ordered to pay £100,000 towards the husband’s costs notwithstanding that her award had been determined on the basis of her needs.
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