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28 October 2011 / Georgina Squire
Issue: 7487 / Categories: Features , Profession
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Tread carefully

Litigators beware: settlement may not be good news, warns Georgina Squire

The most satisfying part of a litigator’s role is often settling a dispute. However, two recent decisions demostrate the risks involved. They offer words of warning and lessons to be learned for every litigation solicitor negotiating a settlement on behalf of their client.

Settling claim without authority

Amalgamated Metal Corporation Plc v Wragge & Co [2011] EWHC 887 (Comm), [2011] All ER (D) 114 (Apr) concerned tax litigation in which Wragge was acting for the Amalgamated Metal Corporation Plc (AMC). The main allegation against the solicitor firm was that it settled a claim without its client’s authority, in breach of its retainer and was negligent.

On the primary case of want of authority, AMC succeeded. The judge reached his conclusion based on both the documentary and witness evidence. He concluded that Wragge had never put the final offer to the client, so the client had not had the opportunity of considering it or instructing Wragge to accept it. One of the main

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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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