For the Claimant: If a Claimant’s offer to settle is rejected by a Defendant and the Claimant goes on to recover more than this offer then he may be awarded increased interest on his claim, at base rate plus up to 10%, and/or a full indemnity for his costs with increased interest on those costs. If the offer is rejected and the Claimant recovers less than he offered to accept, there are no adverse costs consequences. In other words, there is unlikely to be a down side to a Claimant’s part 36 offer.

For the Defendant: If a Defendant’s offer to settle or payment into court is not accepted by the Claimant then the Claimant may be at risk on costs if he continues the action. If the Claimant fails to beat the offer or the amount paid into Court then the Defendant will usually be entitled to his costs from the date of the offer onwards. However, there is no punitive interest.