Failure to settle can have significant costs consequences

Failure to make settlement offers or negotiate with an opponent at an appropriate time in the proceedings can lead to the defaulting party being penalised in costs. This was the strong message confirmed by the Court of Appeal in Cleveland Bridge UK v Multiplex Constructions (UK).

The decision demonstrates the extent to which a party's failure to make offers of settlement or negotiate at an appropriate point in the proceedings can impact on the costs order being made. Wragge & Co's dispute resolution experts examine the decision further.