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29 November 2007 / Anne-sophie Julienne
Issue: 7299 / Categories: Features
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Settled out of court

Does negligent misrepresentation trigger the lifting of the protection afforded by the without prejudice rule? asks Anne-Sophie Julienne

In recent years, English courts have shown increasing support to the without prejudice rule and the settlement of disputes outside of the court. The without prejudice rule renders inadmissible in subsequent litigation admissions contained in communications which are genuinely aimed at settlement. The rule is founded partly upon the need to give effect to the intention of the parties, ie their mutual intention to compromise, and partly upon public policy that parties should not be discouraged from negotiations by the fear that things said or done in the course of written or oral negotiations could be used to their prejudice in the course of proceedings.

PROTECTION NOT ABSOLUTE

Although the protection afforded by the without prejudice rule is not absolute, the courts have taken a restrictive view of the circumstances in which it will be departed from. Save on very rare occasions, it is the fact of the negotiations, rather than their content, which is of

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MOVERS & SHAKERS

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
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