“Without Prejudice” settlement

mc2705

Hi,

I have been in a long running financial dispute with a company, it’s been going on for years.

Last year they wrote to me on a “without prejudice” basis to offer a 20% reduction on the amount they claimed. In an attempt to just end the matter, I wrote back (marking the letter “without prejudice”) saying I would pay 50% in order to avoid a lengthy legal battle.

They accepted (again “without prejudice”) the amount I offered as a “full and final settlement” and I immediately paid.

Since then I have been chasing them for an updated statement that confirms the account is now at £0.00. I’ve chased and chased and then this week received a letter (“without prejudice”) acknowledging they received a payment and demanding the rest of the amount “owed”.

I emailed to complain and pointed out this broke our agreement.

They’ve written back to me (again “without prejudice”) to say that the 50% offer was only for part of the “debt” and that it didn’t apply to everything. They’ve offered a 50% reduction on what they claim the balance now is. They’ve even put in a threatening statement that as I implemented the “without prejudice” correspondence (not true, they were first to do it!) I cannot use the documents in court.

To say I am furious is an understatement!!

Could anybody advise me what my rights are here? The settlement offers were made “without prejudice” which I understand means they cannot be used in court. But as they’ve broken the agreement, does that mean that I can legally pursue them for breaking the agreement? Surely if an offer is made, accepted and paid then there is something I can do if they then change the deal?

Thanks for any advice you can give me.

Undervalued

You need proper professional advice on this from a lawyer who can study all of the paperwork. It sounds as though you have done this DIY?

It is very very important in any settlement such as this for there to be a proper binding agreement that makes absolutely clear what was settled.

You may well be in the right and they are "trying it on" but it is not something that is going to be resolved here.

mc2705

Undervalued wrote: »

You need proper professional advice on this from a lawyer who can study all of the paperwork. It sounds as though you have done this DIY?

It is very very important in any settlement such as this for there to be a proper binding agreement that makes absolutely clear what was settled.

You may well be in the right and they are "trying it on" but it is not something that is going to be resolved here.

Yeah this was all done DIY, I don’t have much money and so was trying to avoid expensive legal costs. That didn’t end well.

Thanks for your reply, I think proper legal advice is the way to go.

waamo

"Without prejudice" documents can be used in court. If you have come to an agreement and one party has breached it then they are evidence and no longer confidential.

mc2705

waamo wrote: »

"Without prejudice" documents can be used in court. If you have come to an agreement and one party has breached it then they are evidence and no longer confidential.

Thanks. I think Undervalued is right that I need proper legal advice, but it’s good to know that there’s hope the documents can be used in court as they’ve breached the agreement.

Undervalued

waamo wrote: »

"Without prejudice" documents can be used in court. If you have come to an agreement and one party has breached it then they are evidence and no longer confidential.

Indeed but first you have got to establish that and will likely have a battle to get them admitted. It is a complex area.

I have no idea how much money is still in dispute. Sadly you have to balance that with the additional risk of significant legal costs, which you may not get back. Or worse ending up having to pay some or all of their costs if you lose.

It is possible than have pulled a fast but legal one?

If there is enough outstanding to justify it, then I think you need to get a legal opinion, if only for your own peace of mind. Then think long and hard about all aspects of proceeding, not just the financial and legal ones.

waamo

The advice to get a legal opinion is spot on. A lot depends on the wording in the agreement.

If money is tight you may be entitled to free legal advice. Take a look here for further details https://www.lawworks.org.uk/legal-advice-individuals/find-legal-advice-clinic-near-you

unholyangel

The purpose of "without prejudice" is to enable parties to enter into a genuine attempt to resolve the dispute without it being held against them as an admission of any liability.

It is not a "take backsies" mechanism. You dont get to use the protection of a genuine settlement agreement if its not a genuine settlement agreement.

mc2705

unholyangel wrote: »

The purpose of "without prejudice" is to enable parties to enter into a genuine attempt to resolve the dispute without it being held against them as an admission of any liability.

It is not a "take backsies" mechanism. You dont get to use the protection of a genuine settlement agreement if its not a genuine settlement agreement.

That’s my understanding. They’ve clearly lied throughout the entire dispute and it’s pretty clear from the more recent “without prejudice” letters what the agreement was. By now claiming something different, I think it’s clear they are pulling a fast one.

Thanks to everyone for the advice, I will be contacting a solicitor to talk this over and hopefully can bring this to a close.

Manxman_in_exile

It sounds to me as if the claimant company might possibly have two (or more) causes for claim against the OP?


The company may have written a without prejudice letter in respect of claim A (say) which is now settled, but now they're pursuing claim B.

mc2705

Manxman_in_exile wrote: »

It sounds to me as if the claimant company might possibly have two (or more) causes for claim against the OP?


The company may have written a without prejudice letter in respect of claim A (say) which is now settled, but now they're pursuing claim B.

Not really. It’s to do with building works and service charges on a leasehold flat. The dispute has been going on for years. They then wrote to offer 20% off the total (they specified £10k in their letter). I said that was insulting but I’d pay 50% just to end the matter. They agreed. I paid. And now they are claiming that the £5k payment was just for the building works.

They are clearly lying, especially because the disputed building works was £4.5k!! Why would I agree to pay £5k as a 50% of £4.5k?

They are a terrible company, I just want this settled so I can sell the flat and move away from them.