If a claimant accepts a Part 36 offer after expiry, what is the likely effect on the defendant's post-expiry costs?

• A. They could wipe out damages and costs entirely.
• B. They guarantee damages as well as costs.
• C. They are irrelevant.
• D. They are capped.

Answer: (D)

Part 36 offers create strong incentives to settle, and the timing of accepting the offer affects how costs are awarded. If the claimant accepts the offer after its expiry, the post-expiry costs the defendant can recover are limited. In practice, this means the defendant’s costs incurred after the expiry date are capped at the amount of the Part 36 offer. Costs up to the expiry date remain as normal, but anything after expiry cannot be recovered beyond the offer value. This protects the paying party from open-ended post-offer costs while still allowing the claimant to receive the settlement sum.