Q&As

Party A is conducting settlement negotiations with Party B and Party C separately in relation to a professional negligence matter. Party B is the allegedly negligent professional and Party C is being asked to rectify the document negligently prepared by Party B. Does Party A have to inform Party B or Party C if a settlement agreement is concluded with the other party? Is the position different if proceedings have already been commenced?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 08/04/2021

The following Dispute Resolution Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • Party A is conducting settlement negotiations with Party B and Party C separately in relation to a professional negligence matter. Party B is the allegedly negligent professional and Party C is being asked to rectify the document negligently prepared by Party B. Does Party A have to inform Party B or Party C if a settlement agreement is concluded with the other party? Is the position different if proceedings have already been commenced?

Where there are multiple parties to litigation, and various different permutations of liability, it may become the case that one party is speaking to multiple other parties with a view to a negotiation of the settlement of liability that arises between each. It may sometimes be the case that such negotiations are extremely sensitive, particularly where one party may settle that aspect of the dispute in which they are implicated, but by such settlement may potentially become liable to another party, for example by way of a contribution or indemnity; alternatively

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