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Reading the judgment, it is apparent that the defendants are to get interest on costs at 2% above base rate from the effective date of the first Part 36 offer, presumably regarded as compensation for that element. The judge refuse d an overall award of indemnity costs because he regarded the case as lost at trial as a result of the defendant counsel cross examination of the claimant witnesses. Note he criticized a claimant expert witness and awarded indemnity costs incurred by the claimant in dealing with that evidence. There is a fairly comprehensive review of the authorities (including the the judge's own), and it seems a reasonable approach.
The defendants approved costs budget was around £345,000, the bill around £616,000, which may have prompted the application.