Which of the following is true about costs in Part 36 offers?

• A. CRU payments are added to damages.
• B. CRU payments due will be deducted from damages payment.
• C. Costs are always assessed on a standard basis, regardless of the offer.
• D. The offer fixes costs at a fixed percentage of damages.

Answer: (B)

Under Part 36, the costs consequences are applied as a deduction from the damages awarded. Any costs that would be payable under the Part 36 offer (often described as CRU payments) are taken off the damages before the claimant receives the payout. This makes the net amount payable to the claimant equal to the damages minus those CRU costs. That’s why this option is correct. The other statements don’t reflect how Part 36 handles costs: costs aren’t simply added to damages; the basis of costs can be standard or indemnity depending on the outcome; and there isn’t a fixed percentage of damages dictated by the offer.