If a claimant accepts a Part 36 offer after expiry of the relevant period, what costs may they face?

• A. The claimant may be liable for the other party's costs incurred since expiry of the 21-day period.
• B. The claimant is not liable for any additional costs.
• C. All costs are waived.
• D. Any costs are limited to court fees only.

Answer: (A)

Part 36 offers are designed to push for timely settlement. The 21-day window is the period within which an offer can be accepted to secure favourable cost consequences. If the offer is accepted after that window has expired, the party who accepts late does not get the protective effect of an early settlement. Instead, the accepting claimant may be liable for the other party’s costs incurred since expiry of the 21-day period. This reflects the consequence of not accepting within the intended timeframe and serves as an incentive to respond promptly. It isn’t a blanket rule that all costs are waived or that only court fees apply; the late acceptance creates a risk of bearing the other side’s costs accumulated after the deadline. The court can adjust or order otherwise in exceptional circumstances, but the basic principle is that late acceptance exposes the claimant to those additional costs from expiry onward.