When is the court told about a Part 36 offer in the costs context?

• A. The court is told during the proceedings
• B. The court is told at the time of the offer
• C. The court is told after judgment when it considers costs
• D. The court is never told

Answer: (C)

Part 36 offers to settle carry their costs consequences only once the case has reached a conclusion and the court is deciding costs. The court needs to know about the offer so it can compare the actual outcome with what was offered and apply the Part 36 costs rules accordingly. Because the main purpose of Part 36 is to incentivise settlement, the costs order is made at the costs stage after judgment, not at the time the offer is made. If the offer is beaten, the party who wins can receive more favorable costs; if it isn’t beaten, the standard costs position applies. So the court is told about a Part 36 offer when it is considering costs after judgment.