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Court confirms that settlement offer remains salient on the issue of costs even after it is withdrawn

12 July 2011

Admiralty Court heard a case relating to the collision of two ships. The Claimants made a settlement offer that was open for 21 days. The offer was not accepted and at trial liability was apportioned on the same bases as the Claimants' offer. The Court found that the Defendant had unreasonably failed to accept the offer within the 21-day period.

This is an important warning that settlement offers should be noted, reasonably considered and kept under review as cases develop and new evidence is discovered.

See : Samco Europe, The Owners or Charterers of the Ship v MSC Prestige, The Owners or Charterers of the Ship [2011] EWHC 1656 (Admlty) (30 June 2011)

Andrew Petchey, Partner, Litigation Team

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