Settlement and litigation costs: when refusing to talk doesn't pay

Following the decision in Vector Investments v J.D Williams, consider the following action points:

• Always keep any offers made under review and don't wait for the other side to come back to you. Consider entering into further negotiations or going back with a further offer where appropriate. Remember that a failure to enter into negotiations (or further negotiations) may result in a successful party being penalised in costs.
• Be alert to all costs being incurred, both your own and those of the other side. This will impact on the offers being made and whether they are reasonable. Remember that the judge attached considerable weight to Vector incurring a further £3.5 million in costs to achieve an improvement of only £350,000.
• In cases involving voluminous documentation, it is essential that documents in your possession are organised properly (including documentation originating from various sources) and that you are ready to discuss the scope and extent of disclosure in advance, seeking the court's guidance if necessary.