Weekly Update A Summary Of Recent Developments In Insurance, Reinsurance And Litigation Law - 40/10

This Week's Caselaw

Oceanbulk Shipping v TMT Asia Ltd & Ors

Admissibility of without prejudice negotiations to interpret the terms of a settlement agreement

http://www.bailii.org/uk/cases/UKSC/2010/44.html

The defendants sought to adduce evidence of exchanges between the parties made during without prejudice negotiations and before a settlement agreement was concluded, because those exchanges were said to be relevant to the proper interpretation of the settlement agreement. At first instance (Weekly Update 28/09) the judge held that the evidence was admissible.

The Court of Appeal (by a 2:1 majority) overturned that decision (Weekly Update 7/10). The Supreme Court has now unanimously held that the evidence is admissible. The House of Lords in Chartbrook v Persimmon Homes [2009] (Weekly Update 24/09) accepted that it may be possible to admit evidence of prior communications between the parties as part of the background which may throw light on what they meant