Latest Information

Court to Hear Settlement Details

03/09/2009

A recent High Court decision has drastically changed the rule which prevents behind the scenes settlement discussions to be kept out of Court during any subsequent disputes.

It is now possible to bring these without prejudice exchanges to the attention of the Court in order to clarify any disputes as to the meaning of the terms in the settlement agreement.

Previously without prejudice statements were only admissible when there was a dispute as to whether the settlement agreement was actually concluded at all. This development therefore radically extends the application of this rule.

Most settlement discussions will retain their secrecy and only details which may resolve any ambiguity in agreements may now be disclosed. However, the remainder of information exchanged between parties during settlement talks still remains confidential.

Employers should therefore consider this development when entering into pre-settlement discussions with employees directly. It is important to note that admissible statements can easily be made in writing or orally so employers should also be cautious what is said during any meetings or discussions held with the employees directly.

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