Settlement and settling disputes

Many disputes are settled. We have produced several Practice Notes and Precedents to guide you through the process of considering and conducting settlement negotiations, making different kinds of offer to settle, and drafting and interpreting settlement agreements.

For detailed guidance and Precedents on Part 36 offers, see: Part 36 offers—overview. For detailed guidance on the various forms of alternative dispute resolution (ADR), including mediation, see: ADR and dispute resolution clauses—overview and Mediation—overview and related content.

The need to seek to settle disputes

Integral to a dispute resolution lawyer’s work is achieving the settlement of disputes. In addition to the client’s own internal drivers such as relationship preservation and avoiding wasting management time, there are civil justice system drivers, not least of which are costs pressures and penalties, working to encourage parties to at least attempt to settle their disputes.

For detailed guidance on why you should actively consider settlement prospects when advising your clients with disputes, when settlement may be possible and should certainly be considered, including the consequences of failing to engage in settlement attempts, see Practice Notes:

  1. Settling disputes—what, when and why settle?

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Court of Appeal confirms narrow scope for post-limitation substitution in wrong defendant cases (Adcamp LLP v Office Properties)

Dispute Resolution analysis: The Court of Appeal has ruled that CPR 19.6(3)(b) does not permit substitution of defendants after expiry of the relevant limitation period where such substitution would change the essential facts necessary to establish liability against the substituted defendant. The claimants (respondents in the appeal) had issued proceedings against firms which had acquired the alleged wrongdoers, believing that any liabilities had been transferred. When it emerged (or was at least disputed) that liabilities had not been transferred, they sought to add or substitute the predecessor firm after limitation had expired. The Court of Appeal concluded that CPR 19.6(3)(b) was not engaged since the substitution would change the claim in substance, as an essential element of the case against the original defendant (the pleaded basis for the acquiring firm’s liability) would be replaced by the primary liability claim against the substituted defendant. It was, in effect, a different claim against a different party. The Court of Appeal was clear that any perceived harshness this might cause to claimants could not be mitigated by adopting a broad reading of CPR 19.6(3)(b). Rather, it considered the problem (if any) was caused by earlier binding Court of Appeal authority which had confined the ‘mistake’ gateway in CPR 19.6(3)(a) to errors of name (misnomer) and excluded cases of mistaken legal responsibility/liability (identity). Any solution, if required, would therefore be a matter for the Supreme Court.

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