If a claimant wins at trial but the judgment is less favorable than their Part 36 offer, what penalties apply?

• A. No additional penalties will be imposed; usual orders will apply.
• B. The defendant pays extra penalties beyond standard costs.
• C. The claimant pays the defendant's costs.
• D. The claimant receives double damages.

Answer: (A)

Part 36 deals with costs consequences connected to offers to settle, not with changing the amount of damages. The penalties under Part 36 are designed to shift costs if the winner’s outcome is either better or worse than the offer, but they do not create extra penalties simply because the claimant won at trial yet did not obtain a judgment more favorable than the offer.

If the claimant wins but the judgment is not as good as a Part 36 offer they made (or received), there are no additional Part 36 sanctions to impose beyond the normal costs order. The usual principle applies: the losing party pays the winning party’s costs on the standard basis (subject to any other usual costs rules). There is no extra penalty such as double damages or a special additional cost simply for not beating the offer in this scenario.

In short, the outcome is governed by standard costs rules, not by an extra Part 36 penalty.