If the claimant beats their own Part 36 offer, what is the typical costs outcome?

• A. They pay double costs
• B. No costs
• C. They receive indemnity costs
• D. They receive fixed costs for the stage at date of judgment

Answer: (D)

The key idea is how Part 36 settlement offers affect costs after judgment. Part 36 invites settlement by offering a terms-based deal, and the costs consequences depend on who beat whom and by how much. If the party who made a Part 36 offer ends up achieving a judgment more favorable than that offer, the usual consequence is a strong cost order in their favor. But when the claimant themselves beats the Part 36 offer they made, the court does not apply the usual indemnity-style uplift. Instead, the costs for the stage up to judgment are dealt with on fixed terms—there are fixed costs for the stage at the date of judgment. This gives a predictable, capped amount for the costs of that stage rather than a detailed assessment or an enhanced costs award.

In short, beating a Part 36 offer you made yourself leads to fixed costs for the stage at judgment, rather than indemnity costs or other variable costs.