12. What should parties to a civil case know about "sanctioned offers " and "sanctioned payments"?

After commencement of proceedings, both the plaintiff and the defendant can make settlement offers by way of “sanctioned offer” and/or “sanctioned payment”. Offers of settlement can relate to the whole or part of the claims (whether monetary or non-monetary), any claim within the proceedings or a part thereof, and even issues within claims.

Notice of “sanctioned offer” and “sanctioned payment” must be given to the other party in writing (see judiciary.gov.hk ).

What is a “sanctioned offer”?

At any time after the commencement of proceedings, any party may offer in writing to settle a claim or part of it on less stringent terms than the pleaded case. A plaintiff may offer to accept a lesser amount in full satisfaction of what he claims in his pleadings. When a plaintiff makes a sanctioned offer to settle a monetary claim, no payment into court is required. A defendant may also make a sanctioned offer to settle non-monetary claims.

What is a “sanctioned payment”?

At any time after the proceedings have begun, a defendant may make a payment into court in settlement or all or part of a plaintiff’s claim.