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ARTICLE · 27 JANUARY 2010

That’s Settled Then…

CMS Cameron McKenna Nabarro Olswang
Explore more from CMS Cameron McKenna Nabarro Olswang

The key to successfully recovering from a third party sums paid in a settlement is proving that the settlement is reasonable. The Court of Appeal has this month offered further guidance on the meaning of reasonable in this context.

United KingdomLitigation, Mediation & Arbitration
Laura Wood
Laura Wood

The key to successfully recovering from a third party sums paid in a settlement is proving that the settlement is reasonable. The Court of Appeal has this month offered further guidance on the meaning of reasonable in this context.

What Happened?

The dispute arose out of a flooded basement at a law firm caused by a defective sprinkler system, which caused extensive damage to electrical equipment. The lessee, occupiers and freeholder brought claims against the contractor (Skanska) who brought its M&E subcontractor into the claim, who in turn involved its sub-subcontractor (Siemens), who claimed against Supershield (whom it had engaged to supply and install the sprinkler system). At a mediation Siemens settled out-of-court, having agreed to pay 48% of the total amount claimed.

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