If the claimant wins at trial under Part 36, costs awarded to the claimant are typically on which basis?

• A. Standard basis
• B. Indemnity basis
• C. Fixed at 4%
• D. No costs awarded

Answer: (B)

The key idea here is the costs regime that applies when a Part 36 offer is involved. If the claimant goes to trial and achieves a judgment more advantageous than the offer, the court typically orders costs on an indemnity basis in favor of the claimant.

Indemnity basis means the claimant recovers a much larger portion of their actual reasonably incurred costs, with fewer deductions for items that might be disallowed or downgraded on the standard basis. It reflects the incentive built into Part 36: the party who did not beat the offer bears a heavier costs burden because they effectively blocked a reasonable settlement and forced a contested trial. This makes the successful claimant’s costs more closely align with what they actually spent to achieve the result.

The other options don’t fit this typical outcome. The standard basis is the usual default where no special Part 36 consequences apply. A fixed percentage isn’t how costs are awarded under Part 36, and no costs awarded would be inconsistent with the claimant’s successful outcome and the Part 36 regime.