Consequences of Unaccepted Part 36 Offers at Trial

Question 1

What triggers the cost consequences under CPR 36.17 when a defendant’s Part 36 offer is not accepted?
A. The claimant accepts the offer after trial
B. The claimant obtains a judgment equal to the offer
C. The defendant withdraws the offer before trial
D. The claimant fails to obtain a judgment more advantageous than the offer

Answer 1

D. The claimant fails to obtain a judgment more advantageous than the offer
Explanation: Under CPR 36.17(1)(a), the trigger occurs when the claimant does worse at trial than what the defendant offered, leading to cost consequences.

Question 2

Under CPR 36.17(5), what is not a factor the court will consider in deciding whether imposing Part 36 consequences would be unjust?
A. The financial means of the parties
B. The terms of the Part 36 offer
C. Whether the offer was a genuine attempt to settle
D. The stage in proceedings when the offer was made

Answer 2

A. The financial means of the parties
Explanation: The court focuses on settlement-related factors and fairness in the offer context, not the parties’ wealth.

Question 2

What is a key penalty if a defendant fails to accept a claimant’s Part 36 offer and the claimant obtains a judgment at least as advantageous as the offer?
A. The defendant is ordered to pay double costs
B. The claimant is awarded indemnity costs and enhanced interest
C. The case is automatically stayed
D. The offer is treated as withdrawn

Answer 2

B. The claimant is awarded indemnity costs and enhanced interest
Explanation: CPR 36.17(4) provides that the claimant gets indemnity costs, enhanced interest on damages and costs, and an additional sum.

Question 3

What happens if the claimant’s Part 36 offer is beaten by a judgment and the offer was withdrawn before trial?
A. The claimant still benefits from the cost consequences
B. The defendant gets indemnity costs
C. The claimant gets double damages
D. The Part 36 consequences do not apply

Answer 3

D. The Part 36 consequences do not apply
Explanation: If the offer was withdrawn before trial, the Part 36 cost consequences will not apply.

Question 4

A claimant offers to settle for £4 million. The defendant rejects the offer. At trial, the claimant is awarded £4 million. What are the consequences?
A. No cost consequences because the judgment must be more advantageous
B. Part 36 consequences apply because the claimant matched their offer
C. The claimant will be penalised for not accepting
D. The claimant gets only standard costs

Answer 4

B. Part 36 consequences apply because the claimant matched their offer
Explanation: Matching your own Part 36 offer is sufficient to trigger CPR 36.17(4) consequences.

Question 5

A defendant makes a Part 36 offer of £2 million. The claimant proceeds to trial and is awarded £1.5 million. What happens?
A. The claimant gets indemnity costs
B. The defendant pays enhanced interest
C. There are no cost consequences
D. The claimant must pay the defendant’s post-offer costs and interest on those costs

Answer 5

D. The claimant must pay the defendant’s post-offer costs and interest on those costs
Explanation: The claimant failed to beat the defendant’s offer; CPR 36.17(3) consequences apply.

Question 6

A claimant offers £3.5 million, the defendant offers £2 million. The court awards £3 million. Which offer (if any) has cost consequences?
A. Neither offer
B. Defendant’s offer
C. Claimant’s offer
D. Both offers

Answer 6

A. Neither offer
Explanation: The judgment is between the two offers. The claimant did not beat their own offer and the claimant did better than the defendant’s offer.

Question 7

If a claimant’s Part 36 offer is made within 21 days of trial and not accepted, which is true?
A. The offer automatically triggers Part 36 consequences if matched
B. The court must abridge the relevant period before Part 36 consequences apply
C. The claimant always receives indemnity costs
D. The defendant automatically pays enhanced interest

Answer 7

B. The court must abridge the relevant period before Part 36 consequences apply
Explanation: A Part 36 offer made within 21 days of trial does not trigger consequences unless the court shortens the relevant period.

Question 8

In a fixed recoverable costs case, what replaces indemnity costs under CPR 36.24 when a claimant’s offer is not accepted and beaten at trial?
A. No additional costs
B. Standard basis costs only
C. A 35 percent uplift based on cost stage difference
D. A lump sum of £75,000

Answer 8

C. A 35 percent uplift based on cost stage difference
Explanation: CPR 36.24 provides for a 35 percent uplift on fixed costs between applicable stages instead of indemnity costs.

Question 9

What happens if both parties have unaccepted Part 36 offers at trial and the judgment is £1 million? Claimant offered £3.5 million, defendant offered £2 million.
A. Claimant’s offer triggers CPR 36 consequences
B. No Part 36 consequences apply
C. Claimant pays defendant indemnity costs
D. Defendant’s offer triggers CPR 36 consequences

Answer 9

D. Defendant’s offer triggers CPR 36 consequences
Explanation: The claimant did worse than the defendant’s offer, so the defendant’s offer is triggered under CPR 36.17(3).