In a civil claim, the claimant wins at trial but fails to beat the defendant's Part 36 offer. What is the usual cost consequence?

• A. The claimant will be penalised
• B. The claimant receives indemnity costs
• C. The defendant pays the claimant's costs
• D. There is no costs order

Answer: (D)

Part 36 offers change how costs are allocated depending on whether the outcome beats the offer. If the party who made the offer is not beaten by the result, the usual effect is that the other party bears the defendant’s (or offeror’s) costs from the date the offer was made. In this situation, although the claimant wins at trial, they did not obtain a more favorable result than the Part 36 offer, so the standard consequence is that the defendant can recover its costs incurred after the offer date, with the claimant bearing those costs. There is no automatic extra uplift or indemnity costs for the claimant in this scenario. The enhanced costs or uplift only apply if the claimant beats the offer.