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Surely the incentive to accept an offer out of time rather than to proceed to trial is to curtail the accumulation of additional costs, to stop them dead.

I don't really understand why Defendants don't just make a slightly increased offer than that which has expired. There is no penalty for doing so as the Claimant is only entitled to invoke Part 36 and seek the additional penalties for having a achieved a better result if Judgment is entered, not if they accept a better Part 36 offer.