The Civil Procedure Rules 1998

[F1 Costs consequences following judgment E+W

36.14— (1) [F2 Subject to rule 36.14A, this] rule applies where upon judgment being entered—

(a) a claimant fails to obtain a judgment more advantageous than a defendant’s Part 36 offer; or

(b) judgment against the defendant is at least as advantageous to the claimant as the proposals contained in a claimant’s Part 36 offer.

[F3 (1A) For the purposes of paragraph (1), in relation to any money claim or money element of a claim, “more advantageous” means better in money terms by any amount, however small, and “at least as advantageous” shall be construed accordingly.]

(2) Subject to paragraph (6), where rule 36.14(1)(a) applies, the court will, unless it considers it unjust to do so, order that the defendant is entitled to—

(a) his costs from the date on which the relevant period expired; and

(b) interest on those costs.

(3) Subject to paragraph (6), where rule 36.14(1)(b) applies, the court will, unless it considers it unjust to do so, order that the claimant is entitled to—

(a) interest on the whole or part of any sum of money (excluding interest) awarded at a rate not exceeding 10% above base rate (GL) for some or all of the period starting with the date on which the relevant period expired;

(b) F4 ... costs on the indemnity basis from the date on which the relevant period expired; F5 ...

(c) interest on those costs at a rate not exceeding 10% above base rate (GL) [F6 ; and]

[F7 (d) an additional amount, which shall not exceed £75,000, calculated by applying the prescribed percentage set out below to an amount which is—

(i) where the claim is or includes a money claim, the sum awarded to the claimant by the court; or

(ii) where the claim is only a non-monetary claim, the sum awarded to the claimant by the court in respect of costs—

Amount awarded by the court	Prescribed percentage
up to £500,000	10% of the amount awarded;
above £500,000 up to £1,000,000	10% of the first £500,000 and 5% of any amount above that figure]

(4) In considering whether it would be unjust to make the orders referred to in paragraphs (2) and (3) above, the court will take into account all the circumstances of the case including—

(a) the terms of any Part 36 offer;

(b) the stage in the proceedings when any Part 36 offer was made, including in particular how long before the trial started the offer was made;

(c) the information available to the parties at the time when the Part 36 offer was made; and

(d) the conduct of the parties with regard to the giving or refusing to give information for the purposes of enabling the offer to be made or evaluated.

(5) Where the court awards interest under this rule and also awards interest on the same sum and for the same period under any other power, the total rate of interest may not exceed 10% above base rate (GL).

(6) Paragraphs (2) and (3) of this rule do not apply to a Part 36 offer—

(a) that has been withdrawn;

(b) that has been changed so that its terms are less advantageous to the offeree, and the offeree has beaten the less advantageous offer;

(c) made less than 21 days before trial, unless the court has abridged the relevant period.

(Rule 44.3 requires the court to consider an offer to settle that does not have the costs consequences set out in this [F8 Section] in deciding what order to make about costs)]

Textual Amendments

F1 Pt. 36 substituted (6.4.2007) by The Civil Procedure (Amendment No.3) Rules 2006 (S.I. 2006/3435), rule 1, Sch. 1 (with rule 7(2)-(7))

F2 Words in rule 36.14(1) substituted (31.7.2013) by The Civil Procedure (Amendment No.6) Rules 2013 (S.I. 2013/1695), rules 2, 6(5) (with rule 10)

F3 Rule 36.14(1A) inserted (1.10.2011) by The Civil Procedure (Amendment No.2) Rules 2011 (S.I. 2011/1979), rules 1(3), 4 (with rule 1(4))

F4 Word in rule 36.14(3)(b) omitted (1.4.2013) by virtue of The Civil Procedure (Amendment) Rules 2013 (S.I. 2013/262), rules 2, 14(a)(i) (with rule 22)

F5 Word in rule 36.14(3)(b) omitted (1.4.2013) by virtue of The Civil Procedure (Amendment) Rules 2013 (S.I. 2013/262), rules 2, 14(a)(ii) (with rule 22)

F6 Word in rule 36.14(3)(c) substituted (1.4.2013) by The Civil Procedure (Amendment) Rules 2013 (S.I. 2013/262), rules 2, 14(b) (with rule 22)

F7 Rule 36.14(3)(d) inserted (1.4.2013) by The Civil Procedure (Amendment) Rules 2013 (S.I. 2013/262), rules 2, 14(c) (with rule 22)

F8 Word in rule 36.14 substituted (30.4.2010) by The Civil Procedure (Amendment) Rules 2010 (S.I. 2010/621), rules 1(2), 6(g)