Beware Of Email Settlement Negotiations

During complex litigation, an issue arose in Bieber and others v Teathers Limited (in liquidation) [2014] EWHC 4205 as to whether a settlement agreement had been made between the parties in email correspondence. HHJ Pelling QC, sitting as a judge in the Chancery Division, held that the parties had settled their litigation by an agreement contained in, or evidenced by, an exchange of emails between their solicitors that had not been conditional to further agreement and was not 'subject to contract'.

Facts

Shortly before the trial, the claimants accepted a settlement offer from the defendant by email which focused exclusively on quantum. In their acceptance email the claimants indicated that they would be circulating a draft consent order and the defendant had replied to this to say "Noted, with thanks", which suggested that no further terms had to be considered. On receipt of the draft consent order, the defendant sent a long-form settlement agreement to the