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  3. Something that the whole lawsuit thing taught me is that settlement offers aren't an indication of weakness - there's a significant strategic aspect of them under English law.

Something that the whole lawsuit thing taught me is that settlement offers aren't an indication of weakness - there's a significant strategic aspect of them under English law.

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  • mjg59@nondeterministic.computerM This user is from outside of this forum
    mjg59@nondeterministic.computerM This user is from outside of this forum
    mjg59@nondeterministic.computer
    wrote last edited by
    #1

    Something that the whole lawsuit thing taught me is that settlement offers aren't an indication of weakness - there's a significant strategic aspect of them under English law. This is covered by part 36 of the Civil Procedure Rules (https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part36), and one of the most interesting parts is 36.17 - the consequences of not accepting an offer to settle. The court system prefers a resolution that avoids court whenever possible, so there are strong incentives for that.

    mjg59@nondeterministic.computerM 1 Reply Last reply
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    • mjg59@nondeterministic.computerM mjg59@nondeterministic.computer

      Something that the whole lawsuit thing taught me is that settlement offers aren't an indication of weakness - there's a significant strategic aspect of them under English law. This is covered by part 36 of the Civil Procedure Rules (https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part36), and one of the most interesting parts is 36.17 - the consequences of not accepting an offer to settle. The court system prefers a resolution that avoids court whenever possible, so there are strong incentives for that.

      mjg59@nondeterministic.computerM This user is from outside of this forum
      mjg59@nondeterministic.computerM This user is from outside of this forum
      mjg59@nondeterministic.computer
      wrote last edited by
      #2

      The short version is that if someone offers a settlement and you refuse it, and the case goes to trial and you either lose, or win but don't win as much as was offered in the settlement, you owe costs from the date that the settlement offer was made, and you owe them at what's called the "indemnity basis" - ie, you have to pay more. This means that there's a strong incentive to make a settlement offer early in the proceedings. If the other side refuses, they'll likely end up owing you more.

      mjg59@nondeterministic.computerM 1 Reply Last reply
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      • mjg59@nondeterministic.computerM mjg59@nondeterministic.computer

        The short version is that if someone offers a settlement and you refuse it, and the case goes to trial and you either lose, or win but don't win as much as was offered in the settlement, you owe costs from the date that the settlement offer was made, and you owe them at what's called the "indemnity basis" - ie, you have to pay more. This means that there's a strong incentive to make a settlement offer early in the proceedings. If the other side refuses, they'll likely end up owing you more.

        mjg59@nondeterministic.computerM This user is from outside of this forum
        mjg59@nondeterministic.computerM This user is from outside of this forum
        mjg59@nondeterministic.computer
        wrote last edited by
        #3

        But obviously it's important that the judge makes a decision without knowing about what offers have been made and refused and what they involved, because that might otherwise prejudice their decision making process - so 36.16 makes it clear that disclosing the existence of any offers before judgement is entered is forbidden

        mjg59@nondeterministic.computerM 1 Reply Last reply
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        • mjg59@nondeterministic.computerM mjg59@nondeterministic.computer

          But obviously it's important that the judge makes a decision without knowing about what offers have been made and refused and what they involved, because that might otherwise prejudice their decision making process - so 36.16 makes it clear that disclosing the existence of any offers before judgement is entered is forbidden

          mjg59@nondeterministic.computerM This user is from outside of this forum
          mjg59@nondeterministic.computerM This user is from outside of this forum
          mjg59@nondeterministic.computer
          wrote last edited by
          #4

          But settlements still make sense in terms of saving everyone time and money, and it's not unusual for them to occur immediately before the trial, or even *during* the trial. Someone being willing to offer a settlement isn't admitting they have a weak case, and in general if you were offered a settlement, refuse it, go to trial and then lose, you've made some poor choices.

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