Under Part 36, for damages up to £500k, what additional percentage might the defendant be ordered to pay on damages if the offer is beaten?

• A. 5%
• B. 15%
• C. 0%
• D. 10%

Answer: (D)

Under Part 36, if a defendant makes a settled offer and the final judgment is more favorable to the claimant than that offer, the defendant can be ordered to pay an additional sum on top of the damages. This uplift is 10% of the damages awarded, and it applies for claims up to £500,000. The idea is to encourage parties to settle early by making a relatively costly consequence if the offer is beaten. For example, if the court awards £300,000 in damages and the Part 36 offer was lower, the claimant would receive £300,000 plus an extra £30,000 (10%), in damages, aside from any costs.