Commercial offer without predujdice !!

eddie_rs

I have been in dispute with a insurance broker for the past 18 months and have been offered a commercial without prejudice offer which only represents approx. 15% of claim as they are indicating if I do proceed with court action in there opinion it is 50/50 my word against brokers. I have asked brokers for records for telephone conversations after stalling liability for 18 months they have now said they are unavailable. The fire I had destroyed my building and my business so financially I am in a critical condition and will have to borrow more money to take proceedings further .They have asked for a commercial counter offer what should I do ?

InsideInsurance

What sort of monies are we talking about?

Are they saying that the circumstances lead to a 50/50 decision or the fact that neither side can evidence their version of events means its a 50/50 as both versions are equally liable and place blame 100% on the other side?

Does the size of your organisation prohibit a complaint to the FOS?

eddie_rs

the amount of loss is to big for FOS 850K


They have said it is a commercial offer because they feel it has not been proved that brokers new statement of facts but this is far from the truth and is why I asked for telephone records but they say that they do not have any and i have provided various evidence that brokers were fully aware of facts .They have asked for counter offer but feel it is just another way to stall proceedings starting to which I will find hard to finance

InsideInsurance

However they want to dress it doesnt really matter. Admitting liability or doing things on a without prejudice basis really only impacts any additional future claims but if its all wrapped up in this one then its not something to hang up on.

Given the size of the monies in dispute presumably you have a solicitor working for you? What has been their advice?

The courts are intended, in most cases, to be the place of last resort and you do need to have shown willing to negotiate/ argue the case prior to the courts - that isnt to say you have to back down or accept something lower than you feel is appropriate.

Its up to you, under appropriate legal advice, to decide if you want to put in a counter offer with a time limit in the spirit of negotiation and to finalise the matter or stick to your guns and say your only prepared to accept 100% of monies owed and you'll issue within 14 days if you dont get the monies.

eddie_rs

I had solicitor but have had to stop because fees were too much and so I have had conversations with no win no fee but they require 25% of win ,so I was trying to negotiate with insurers solicitors to keep my costs down and hope for reasonable early settlement

InsideInsurance

25% would be inc of VAT so the actual cost to you is slightly lower - given the scale of loss I assume youre VAT registered. The fee is negotiable of cause so you could find one with a lower level. Given the cost involved it isnt going to end up in small claims court so they'll be getting reasonable fees for winning anyway.

OnanTheBarbarian

Wasn't there a thread about this a year ago?

eddie_rs

I will have too consider third party and like you suggest try and negotiate a decent win percentage

OnanTheBarbarian

When it comes to losses of the business, make sure when you are looking at this claim from your own business loss perspective that you can only claim for net loss of profit, not lost gross income (whatever the nature of your business is)

I'm not criticising you, but just offering a bit of "advice" when it comes to your own realistic expectations as if your profit margin, net of business overheads and taxes etc is say 30% that is what you should be basing your claim for losses on as far as the business losses ( I don't include the value of the property etc in this)

It may help you when it comes to formulating a counter offer.

Whatever you do, make sure you do find a decent commercial lawyer or even consider instructing a barrister directly, which you can do now and they may offer more favourable terms if they will deal under a contingency fee agreement.

eddie_rs

how does a contingency agreement work ??

Quentin

AKA no win no fee