Claimant beats its own Part 36 offer at trial: calculating the additional amount (CPR 36.17(4)(d))
Rosalind Achebe Interiors Ltd sued Cardew Hotels plc for unpaid design fees and damages in a multi-track claim to which no fixed costs regime applies. On 12 January 2026 the claimant made a valid Part 36 offer to accept £250,000 (inclusive of interest), with a 21-day relevant period. Cardew did not accept it, and the offer was not withdrawn or changed. After a trial in September 2026, the court gave judgment for the claimant for £300,000, calculated on the same basis as the offer. The court does not consider it unjust to apply the Part 36 consequences, and no previous order for an additional amount has been made.
What additional amount must the court award the claimant under Part 36?
Choose one answer to see the reasoning.
Worked answer
Correct answer D: £30,000.
THE RULE TO REMEMBER
Where a claimant matches or beats its own Part 36 offer, the additional amount is 10% of the sum awarded up to £500,000 (5% above that), capped at £75,000 (CPR 36.17(4)(d)).
Claimant beats its own Part 36 offer at trial: calculating the additional amount (CPR 36.17(4)(d))
CPR 36.17(1)(b) applies because judgment against the defendant (£300,000) is at least as advantageous to the claimant as its own Part 36 offer (£250,000). None of the CPR 36.17(7) exceptions applies, since the offer was not withdrawn or changed and was made long before trial. Unless it considers it unjust, the court must then order enhanced interest on the sum awarded, at up to 10% above base rate, from expiry of the relevant period, indemnity costs from that date with interest on those costs, and an additional amount (CPR 36.17(4)). Under CPR 36.17(4)(d) the additional amount is calculated by applying the prescribed percentage to the sum awarded to the claimant. For amounts up to £500,000 the percentage is 10% of the amount awarded, with an overall cap of £75,000. The sum awarded is £300,000, so the additional amount is 10% x £300,000 = £30,000.
Why A is wrong: £5,000 is 10% of the £50,000 by which the claimant beat its offer, but the percentage applies to the whole sum awarded.
Why B is wrong: £15,000 applies 5%, which is used only for the part of an award above £500,000.
Why C is wrong: £25,000 is 10% of the offer, but the percentage applies to the sum awarded by the court.
Why E is wrong: £75,000 is the maximum cap on the additional amount, not the amount payable on an award of £300,000.
A little more practice done.
Related questions
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