Question 1 of 7

[facts from previous question should you wish to refer back: The final part of the conference is a discussion about settlement . You advise that the case on liability is very strong and estimate that the claimant will recover in the range of £70,000 to £125,000 in damages. The most uncertain part of the claim relates to his future loss of earnings. The defendant has not made any offers. The claimant has already made an offer to settle in the sum of £110,000, which you advise is very sensible. The relevant period of 21 days has expired and the offer has not been accepted. There are no conduct issues in relation to the way the proceedings have been pursued or contested]The claimant’s offer is not accepted by the defendant. 14 days before trial the defendant makes a valid Part 36 offer of £90,000. On your advice the claimant does not accept the offer and the case goes to trial. The claimant has not withdrawn or changed their own offer.At trial the claimant is awarded £105,000 , which includes interest after the end of the relevant period of £2,000.Assuming there are no conduct issues what is the correct advice in relation to the most likely costs order in these circumstances ?

A. In these circumstances Part 36 has no effect so costs are entirely in the discretion of the court. The defendant is likely to be ordered to pay the claimant’s costs on the standard basis B. Because Part 36 offers cannot be made less than 21 days before trial the defendant’s offer has no effect, so costs are entirely in the discretion of the court. The defendant is likely to be ordered to pay the claimant’s costs on the standard basis. C. The defendant will pay the claimant’s costs up to the end of the relevant period on the standard basis. Costs after this date will be assessed on the indemnity basis, the claimant will also be entitled to interest on damages and interest on costs of up to 10% above base rate for this period and an additional amount of 10% of the total damages awarded. D. As the judgment was not at least as advantageous as the claimant's own offer, the claimant will recover his costs to the end of the relevant period but will be ordered to pay the defendant's costs and interest on costs from the end of the relevant period.