Most legal disputes are settled out of court, but for anyone who's not settled a dispute in this way, the process can be confusing.

Here, we answer some of the frequently asked questions about out of court settlement.

Does a settlement mean the other side admit I am in the right?

It's possible that as part of a settlement the other side may admit you're in the right, but in the vast majority of cases there'll be no admission of responsibility and no apology.

It's important, however, to remember that even if you win at court, the other side still won't admit they're in the wrong or offer an apology. A court can't order someone to apologise, only that someone pays a sum of money.

When can settlement occur?

Settlement can occur at any stage; from first contact with the other side, to the steps of the court before a final hearing. Many cases are settled prior to court proceedings being issued. We'll consider and advise you on settlement at all appropriate stages.

What are the advantages of settling?

One of the big advantages of settling legal disputes is that you're much more likely to get the money you're seeking far sooner. It can take a long time to get your case heard in court, and at the outset of a claim it can be very difficult to estimate how long it'll take. As settlement can occur at the early stages of the process, you can receive payment much sooner than if you'd waited for a hearing.

The other major advantages are to avoid the risk of losing at trial and to reduce stress. We'll work as hard as we can to make your case as strong as possible, but there are very few 'sure things' in dispute resolution. No case is ever 100% guaranteed to succeed and many people with very strong cases therefore wish to settle disputes in order to avoid the risk of losing.
 
We're professionals, and it's our job to resolve disputes. We'll do everything we can to minimise the stress on you, but by their very nature, court proceedings and hearings are adversarial, and this can be stressful. Many people simply wish to avoid the stress of court hearings, and so are prepared to 'pay a price to avoid it', which amounts to a discount on the amount they are claiming.

If I make an offer to settle am I admitting my case isn't very strong?

No. You're instead saying that although you believe your case is strong and you'll win, you're  willing to accept a lower sum to avoid the risk of not winning and the time and stress involved. It's a pragmatic move, not a sign of weakness.

Will the judge hearing the case see the offers made?

Most offers to settle are made in such a way so that the judge is not allowed to see them until after a decision on the case has been made. Once a decision on the case is made, the offers of settlement made by each party become a factor for the judge in deciding who should pay the costs of the proceedings. The judge will want to see that each party has made reasonable attempts to resolve the dispute and will therefore want to see settlement offers from each side.

If you're awarded a sum by the court that's higher than an offer you made to the other side, they'll be penalised by the court. The court will take the view that they could have resolved this dispute earlier by accepting the offer you made, and will order them to pay a larger proportion of your legal costs as well as interest on them.

However, if you don't accept an offer from the other side, then at court fail to beat this offer, you may be penalised by the court in costs. We will of course advise you in full of the potential consequences of non-acceptance of offers whenever appropriate.

What about my legal costs?

We will only advise you to make and accept offers that include provision for your legal costs to be paid. If any offer does not include provision for all your legal costs to be paid we will advise you in full as to how that will impact on you.

What if they other side don't pay what they agreed to pay?

We'll always, when appropriate, record the settlement reached in such a way that allows for the court to order that the other side pay the sum they agreed to pay.

However, it's worth noting that if a party has agreed to pay a particular sum in settlement of a dispute, it's likely that they're in a position to pay such a sum. This is in stark contrast to situations where a party is ordered to pay a sum by a court that they simply don't have.

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All documents should be read and used in accordance with the terms and conditions. This document is for your general information only and is not a detailed statement of the law. It is provided to you free of charge and should not be used as a substitute for specific legal advice. If you require specific legal advice please contact our helpline on 03700 86 86 86.