If the claimant wins at trial and the judgment is at least as advantageous as their Part 36 offer, what is the general financial consequence for the defendant?

• A. The defendant pays no additional penalties; only standard costs apply.
• B. The defendant must pay additional penalties on damages up to specified thresholds.
• C. The defendant pays double the damages.
• D. The defendant's costs are always capped at £75,000.

Answer: (B)

Part 36 offers act as a strong incentive to settle. If the claimant goes to trial and the judgment is at least as advantageous as the defendant’s Part 36 offer, the defendant must pay an extra amount of costs on top of the usual costs. This “additional amount” is a penalty linked to the damages won and is subject to specified thresholds or caps. So the financial consequence is not just standard costs; there are added penalties payable on the damages, up to certain limits. The other options either ignore these extra costs, imply an excessive or different outcome, or misstate caps on the defendant’s costs.