If defendant pays the claimant within 14 days of service, what cost regime applies?

• A. Fixed costs will apply
• B. Costs will be decided by the court after trial
• C. There are no costs
• D. The claimant bears costs

Answer: (A)

The key idea here is how costs are determined when a defendant acts quickly to settle. If the defendant pays the claimant within 14 days of service, the case falls under the fixed costs regime. Under this regime, the claimant can recover a predetermined, fixed amount for costs, rather than having costs assessed item by item after the event. This setup is designed to encourage early payment and simplify costs recovery. If payment occurs after the 14-day window, the fixed costs regime does not apply, and costs generally follow the standard regime, being subject to assessment rather than a fixed schedule.