Solicitors Sheffield

What is the position on offers to settle in litigation

Litigation is a complex business. It generally demands a sound and ongoing assessment of :-

• The law relating to the underlying dispute
• Skillful use of the court rules (Civil procedure Rules)
• Tactical considerations

Tactical considerations can be equally important, if not more important than the other factors described above. There is rarely an outright “winner” in litigation and tactics and tactical offers in litigation are a vital tool in achieving the best available outcome in a situation where there may be no outright winner.

How does an offer to settle impact on costs ?

It is also important to bear in mind that with litigation or disputes, costs can quickly escalate and become a major factor in the financial outcome. As costs are technically in the discretion of the Court, where a tactical offer has been made by either party which is refused by the other party, which then goes on to trial and achieves a less favourable outcome, the court may well penalise the party that refused the earlier offer on costs.

What is “without prejudice save as to costs” ?

Offers to settle a  case are generally put forward on a ‘without prejudice save as to costs’ basis meaning they can only be referred to the judge when the issue of costs arises after judgment. Either party can put forward an offer to settle and it is important to also take into account any counterclaims and other parties involved in a dispute (some cases have multiple claimants or defendants)

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