No Win No Fee Personal Injury Claims
With a No Win No Fee agreement, your solicitor will represent you in a personal injury claim without asking for any upfront fees. In the…
Read moreWithout prejudice claim offers
This article explains what ‘without prejudice’ claim offers are, when they can be made by insurance companies and the possible pros and cons to the claimant.
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What are without prejudice claim offers?
If you’ve suffered harm and someone else was at fault, you may want compensation for your pain and suffering. If you have a valid claim, the defendant might make you a without prejudice offer to settle it. This means they will offer you a settlement without formally admitting liability for your injuries or losses.
Such offers can be made in every personal injury claim, such as for road traffic accidents, accidents at work, industrial diseases and medical negligence. An experienced solicitor can help assess your case and advise on whether you should accept a settlement in these circumstances.
To learn more about without prejudice claim offers and whether you should accept one, continue reading our guide below. If you would prefer to speak to a legal adviser, call 0800 470 0474 or use our online claim form to request a call back.
By submitting this form you agree to be contacted by our partners. Find out how we handle your data in our privacy policy. With no win no fee you typically pay 25% of your compensation if your claim is successful, but the fee can vary. Termination fees may apply if you fail to co-operate with your solicitor.
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What does without prejudice mean?
Without prejudice (WP) is a legal term that is used in negotiations and settlement discussions. It means that any statements, offers, or correspondence made under this label cannot be used as evidence in court if the case proceeds to trial.
In other words, this label ensures that anything the parties discuss during negotiations will not prejudice either party’s legal position if the case goes to court. This protection applies to both the claimant and the defendant:
- The claimant can negotiate freely without the risk that their settlement discussions will be used against them in court.
- The defendant can make a settlement offer without it being used as an admission of liability in court.
A without prejudice settlement offer from an insurer shows a willingness to cooperate and compensate a claimant without needing to progress with lengthy and costly legal cases.
However, if a court considers such an offer as having been made without a genuine desire to resolve the dispute, there will be an exception to this rule.
What are the requirements for without prejudice communication?
The without prejudice rule exists to prevent statements made while trying to settle a claim from being used as evidence in court if the case goes to trial. For communication to be considered without prejudice, it must meet the following requirements:
- There must be an actual or anticipated dispute between a claimant and a defendant;
- It must be part of a genuine attempt to settle this dispute – it does not apply to casual discussions;
- The defendant has made a settlement offer that could fairly and reasonably settle the dispute.
While it is best practice to label documents or conversations as without prejudice, the protection may still apply even if the phrase is not explicitly used, as long as the intention is clear.
Exceptions to the without prejudice rule
The without prejudice rule grants significant protection to the parties involved in a dispute. However, this protection is not absolute, and there are a few exceptions where without prejudice communication will be admitted in court:
- If the material contains proof of fraud, perjury, threats, undue influence, blackmail or other types of illegal conduct;
- If one of the parties denies that an agreement was reached through negotiations;
- If a statement made during the communication gave rise to estoppel – this is a legal principle that prevents a party from arguing something contrary to a position they have previously taken;
- The communication was not part of a genuine desire to settle but instead was used to gain an unfair advantage or delay proceedings;
- Both parties agree to waive the without prejudice privilege;
- If there is a dispute regarding the reasonableness of a settlement agreement.
These exceptions ensure that without prejudice cannot be abused and that the court can access relevant information when necessary.
Why might I receive a without prejudice offer?
If you are seeking compensation for a personal injury, you might receive a ‘without prejudice’ offer from the defendant, either orally or in writing, for several reasons:
- They may want to settle the case quickly to avoid a lengthy and costly legal process;
- They may prefer to settle for a lower amount if they think they might lose in court and be ordered to pay more compensation;
- To keep negotiations confidential and maintain control over the outcome;
- To preserve their reputation and avoid bad publicity;
- To test whether you are willing to negotiate or accept a quicker resolution.
You should not accept a ‘without prejudice’ offer before consulting with a personal injury lawyer. They will be able to assess the compensation amount you are entitled to and advise you on your chances of success if you go to trial.
Should I accept a without prejudice settlement offer?
Many claimants are keen to accept a without prejudice offer from an insurance company. This allows them to access a settlement figure more quickly and avoid the inconvenience and costs of a legal case.
However, you have the right to decline an offer if you believe that the sum is too little or that the insurer is being unreasonable. In such instances, a court case may be necessary to reach a final settlement.
If you have received a without prejudice claim offer, you should seek the advice of a solicitor before accepting or declining the settlement amount. Some factors that they will consider to ensure you receive a realistic and fair sum for your injuries and losses include:
- Whether the offer reflects the true value of your claim or is significantly lower than they believe you are entitled to;
- The strength of the evidence you have to prove the defendant’s liability and your damages;
- The potential legal costs, stress and time involved in court proceedings;
- The certainty of a settlement versus the risk involved in going to court.
If your lawyer believes the offer you received is unfair, they will start legal proceedings and will be ready to argue your case before a judge.
What happens if I accept an offer to settle without prejudice?
If you receive a ‘without prejudice’ offer, you should carefully consider what you are offered before accepting it. Your solicitor will ensure you undergo a complete medical exam and calculate all your losses to advise you on the best course of action.
Accepting a without prejudice offer means that:
- Once you accept a settlement, this is legally binding, and your claim comes to an end. You cannot pursue further legal action if your injuries worsen or you incur more costs.
- The defendant (or their insurer) will not formally admit fault for your injury or illness. This may be significant, particularly if you have lost a loved one or suffered serious harm due to their actions.
- On the other hand, if the offer fairly reflects your losses, it can be beneficial to accept it. This ensures you will receive the compensation you deserve for your injuries quicker and without going through any more stressful proceedings.
- The details of your settlement will remain confidential.
What types of claims could be settled without prejudice?
Most personal injury claims can be settled according to the without prejudice rule. This essentially encourages an out-of-court settlement following accidents and incidents that cause harm to the claimant, such as:
- Workplace accidents caused by unsafe working conditions, manual handling or exposure to hazardous substances;
- Road traffic accidents caused by another driver’s negligence, poor road conditions or vehicle defects;
- Medical negligence, such as the delayed diagnosis of a condition, surgical mistakes, medication errors and childbirth injuries;
- Slips, trips and falls in public places resulting from wet floors, uneven pavements or hazards left in walkways;
- Industrial diseases, such as work-related cancers, hearing loss due to loud work environments and injuries caused by vibrating tools;
- Sports injuries resulting from lack of protective equipment, poor ground conditions, bad advice from a coach or inadequate training;
- School or playground injuries to children caused by poor supervision or faulty equipment;
- Dog bites and other accidents involving animals;
- Fatal injuries and the wrongful death of a loved one.
If you or a loved one suffered harm due to someone else’s fault, an experienced solicitor can let you know if you can start a personal injury claim.
If you can proceed and the defendant makes you a without prejudice claim offer, your solicitor will carefully asses your losses and advise you on whether you should accept it or not.
What is the difference between ‘open’ and ‘without prejudice’ communication?
‘Open’ and ‘without prejudice’ communications both refer to statements, offers, and discussions related to settlement negotiations.
Open communications can be used as evidence in court if you cannot settle with the defendant. For example, the formal letter of claim that your lawyer will send to the other party to inform them of your allegations can be relied upon during litigation.
If the defendant responds with a letter marked ‘without prejudice’ by which they offer you a settlement, it cannot be used as evidence in court if negotiations fail.
On the other hand, if they respond by saying that they deny liability and will dispute your claim, you can use it as evidence if the case proceeds to trial.
In other words, open communication directly states the claim and position of the parties, while without prejudice communication is used solely for negotiation purposes.
What does without prejudice save as to costs mean?
‘Without prejudice save as to costs’ (WPSATC) is different from without prejudice claim offers.
The last part of the phrase, ‘save as to costs’, means that, while the offer cannot be used as evidence during the trial, it can be referred to when deciding the costs of the case after the trial has concluded.
So, if one party refuses a reasonable offer and the case goes to trial, the judge can consider that offer when determining who should pay any outstanding legal costs.
For example, if the defendant makes a WPSATC offer and the claimant refuses it but then receives a less favourable outcome in court, the claimant could be penalised in terms of costs.
This ensures both parties are incentivised to act reasonably and attempt to settle an existing dispute by avoiding unnecessary legal proceedings.
What is the time limit to start a compensation claim?
As a general rule, you have three years to start a claim for compensation according to the Limitation Act 1980. The three years begin from the date of your accident or from when you first realised that your harm was caused by someone else’s negligence (date of knowledge).
There are a few exceptions to this rule:
- A parent can initiate a child injury claim at any time before the child turns 18. After reaching 18, the child has until their 21st birthday to start a claim themselves.
- The time limit is put on hold or suspended if the claimant lacks the capacity to handle a claim. This could be due to a brain injury, intellectual disability or mental health condition.
- If you lost a loved one due to another party’s fault, you have three years to claim compensation starting from when they passed away.
It is highly recommended that you start your claim as soon as possible to ensure the availability of evidence and that you and your witnesses remember all the relevant details about what happened.
Do I need a solicitor to settle my claim?
No, you are not legally required to hire a personal injury lawyer to settle a claim. You can negotiate directly with the defendant or their insurer, especially for straightforward cases with minor injuries. However, they may try to settle for less than you deserve or deny liability.
Having a solicitor on your side can significantly improve your chances of getting the best possible compensation. Some of the benefits they bring include:
- They can assess the full extent of your damages, including future losses;
- Insurers take claims more seriously when a solicitor is involved;
- They can make sure you do not accept an unfair without prejudice offer;
- If negotiations fail, they can take the case to court on your behalf;
- They will work on a no win no fee basis, which means you do not pay them unless you win the claim.
If you want to start a claim or have received a without prejudice claim offer and want legal advice, do not hesitate to call 0800 470 0474 or request a call back. You will receive a free consultation with an experienced solicitor, which is provided without any obligation to proceed.
By submitting this form you agree to be contacted by our partners. Find out how we handle your data in our privacy policy.
By submitting this form you agree to be contacted by our partners. Find out how we handle your data in our privacy policy.
