If the claimant accepts a Part 36 offer before issue of proceedings or allocation, but the amount accepted would normally be allocated to the small claims track, is he then entitled to costs on the standard basis pursuant to Part 36?

Part 36 and small claims

CPR 36 is an extremely widely known and used set of prescriptive rules for settlement offers. These rules provide for costs consequences that are especially relevant when one party fails to achieve a better result at trial than could have been achieved by accepting a Part 36 offer the other party had made.

There is no reference in CPR 36 to the small claims track. This is because once a claim is allocated to that track it is not possible to make a Part 36 offer—CPR 27.2(1)(g). Part 36 offers made earlier are valid, however, and it is such offers which are being considered here.

Consequences of acceptance generally

The costs consequences of a Part 36 offer being accepted are relatively simple. Although such an offer can be made by either