An effective settlement? The House of Lords considers

United Kingdom

The full spectrum of professionals and their liability insurers, particularly those commonly involved in multi-party disputes, will be very interested in the unanimous judgment of the House of Lords in Cape & Dalgleish v Fitzgerald, which was decided, together with appeals in three other similar cases, at the end of last week (26 April 2002).

Important legal issues were considered as to when a claim can be said to have been satisfied, providing some clarification of the law following the House of Lords decision in Jameson v Central Electricity Generating Board, as were the practical difficulties faced by defendants in seeking to negotiate a settlement with a claimant in the hope of preventing themselves being brought back into a dispute at a later date, for example, by way of a contribution claim from another defendant or other possible recovery target for the claimant.

Further details of the judgments and potential pitfalls for those involved in the negotiation of claims settlement will follow on Law-Now shortly, but in the meantime, for further information please contact Richard Curd on +44 (0)20 7367 2791 or by e-mail [email protected] or Tara Maclean on +44(0)20 7367 2452 or by e-mail [email protected], who acted for the successful Respondents, Cape & Dalgleish.