If the claimant loses at trial after having made a Part 36 offer, what is the outcome for the claimant?

• A. The claimant receives no damages and will have to pay the defendant's costs.
• B. The claimant is awarded damages equal to the offer amount.
• C. The claimant is awarded costs on an indemnity basis.
• D. The claimant's offer is deemed withdrawn.

Answer: (A)

Part 36 offers affect costs depending on the trial result. If the claimant loses after making such an offer, there are no damages awarded to the claimant, and the claimant will have to pay the defendant’s costs. The offer’s advantage only materializes if the final judgment is equal to or better than the offer for the claimant or if the offer is beaten in the way Part 36 contemplates; when the claimant does not achieve a more favorable result, the usual rule applies and the loser bears the winner’s costs. So, in this scenario, zero damages and payment of the defendant’s costs is the appropriate outcome.