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 problems for Wragge appeared to be the absence of
