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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To not follow my lawyers advice

44 replies

marinariv · 21/10/2018 22:44

Can anyone shed light on how an out of court settlement agreement with an employer works, is it good practice to accept the first offer?. My employer has admitted wrongdoing and has requested to settle, my laywer put forward the damages I suffered at a total of of 65,000 and my ex employer made an offer of 30,000, my lawyer is keen for me to accept, but I just think its a little odd that he is not even trying to negotiate more and wants to accept the first offer, is this usual practice ? My lawyer has said the offer was reasonable, and he does not think I would get more if I pursued the claim to court.

OP posts:

AlphaBravo · 21/10/2018 22:47

You can counter offer afaik. I'd go back with 50 and they should come back with 35 and eventually settle on 38

Xenia · 21/10/2018 22:49

It is very hard to know as each case depends on its facts. If you have a really good case and you can prove you lost £65,000 of wages then might be worth asking your solicitor to try for more than £30k.

Ask the solicitor to put in an email the pros and cons eg do they think you will lose if you go t a tribunal and it is better to take the money on offer. Just try to find out their reasonings.

Just because they put forward 65k does not mean you will get that. It is very very common to put forward your very best case to start with but knowing perfectly well you might get much less. Just ask them to explain by email why £30k is a good offer. You do not have to accept the offer (although if you have some kind of no win no fee arrangement for paying your solicitor then they may have more say in what you accept or reject).

Helpmemyhairisterrible · 21/10/2018 22:50

Had a similar situation, but smaller amounts of money. Offered £2k, went back and settled at £4k. I can only think that given the amount involved, your solicitor must believe that to go back with a counter may lead the employer into further litigation which may or may not go in your favour. It really depends on whether you can afford to settle at £30k or if you can afford to stick to your guns and end up with nothing plus solicitors fees because the principles are more important to you. Good luck whatever you decide.

Dafspunk · 21/10/2018 22:52

Have only ever been on the employer side but have always expected the other party to negotiate once first offer has been made.

YeOldeTrout · 22/10/2018 05:40

If you pursue the claim and lose, will you pay all costs to your lawyer & have to pay their extra costs? I don't understand the risks of not taking this offer (other than taking longer to get your compensation).

todayiwin · 22/10/2018 06:08

I didn't accept the first offer as I was told "well they had admitted they're wrong"

They came back within 48hrs with the full offer.

footballmum · 22/10/2018 06:14

Your lawyer is obliged to act on your instructions, even if they don’t agree. If you go back with a counter offer and the other side doesn’t go for it, it would be extremely unusual for them to pull their original offer. If they don’t increase their offer they’re more likely to come back and say that £30K is their best and final offer. So you’ve got a decision to make as to whether to take it or fight on.

Just a word of warning though-if your lawyer is acting for you through an insurance funded or no win no fee arrangement the funding can be pulled if they think you are unreasonably rejecting a suitable offer.

IAmNotAWitch · 22/10/2018 06:17

I would suggest that you ask your lawyer for more information on why they think this is an acceptable offer.

It may be that they have taken into account your likely costs, the possibility of you losing further litigation and having to pay the other side's costs etc.

Get more info and if you believe you wish to push harder your lawyer should follow your instructions.

As PP has mentioned though there are many variables around this and the terms on which you have contracted with your lawyers will be relevant.

Rejecting this offer could end up costing you more in the long term.

BookMeOnTheSudExpress · 22/10/2018 06:28

Many years ago I was offered about 10,000 to settle. In a cheque, to the solicitor's office, the next day.
The solicitor advised me that I might get 20. But it would take a lengthy court procedure, much back and forth and digging in of heels by the other party and would, if the courts decided in my favour, take years.
I took the 10. Two workmates in the same situation hung on and I don't actually know the outcome, we all lost touch as soon many years had passed.
Clarify with your lawyer why s/he thinks it would be better to close now.

filka · 22/10/2018 06:35

IMO in this situation counterparty will always make a first offer of the lowest they think they can get away with, not the maximum they are willing to pay. It's not (quite) enough for you to consider it derisory, but enough to make you worry about the risk of refusing it (as you are...). But it's not a one-strike-and-you're-out situation, it's a haggle.

Presumably there is some logic and rationale behind the 65k you asked for; this logic hasn't changed. But it probably has a bit of inflation built in and you now need to consider how much of that inflation to concede.

Simplistically you have a reasonable chance to split the difference and end up around 45-47k but don't go there in one step. If you counter with about 55 they may come back with 38-40-ish etc.

Also...are they asking for a non-disclosure agreement? That's an indication that they may also be trying to protect their reputation (which can be a lot more expensive than cash cost of going to court). For that the settlement price should go up!

Good luck.

YeOldeTrout · 22/10/2018 06:59

What if OP counters with a higher offer (say £50k).
Most likely they will up their £30k to somewhere inbetween (say £40k).
The least likely is that they will withdraw the £30k offer.
They could stubbornly insist no more than £30k. Then OP could decide again to take that or not.

Seems very low risk to simply to counter-offer thru the lawyers (not via a courts or formal filings).

AstralTraveller · 22/10/2018 07:13

I had similar last year. My employer offered X and my union rep said that wouldn't go anywhere near what was expected and we settled at halfway between what the employer offered and the original monies expected. No-one fold at the first offer surely? It just makes you look like you have a weak case.

grumiosmum · 22/10/2018 07:15

Negotiate.

They will increase their offer.

Yura · 22/10/2018 08:11

Ask your lawyer - she might know more about the other sides usual style. If they have a habit of drawing it out if a -reasonable- first offer is not accepted, you might ger £35000 in thd end, but it could take years while costs go up. Not a problem for a bug company as tveir lawyers are there anyway, but a problem for you. And a fairly common strategy.

DeadGood · 22/10/2018 08:13

“Presumably there is some logic and rationale behind the 65k you asked for; this logic hasn't changed. But it probably has a bit of inflation built in and you now need to consider how much of that inflation to concede.”

Agree. Where did that £65K figure come from? Presumably the solicitor considered it a reasonable sum to request, so why have they changed their minds now?

Yura · 22/10/2018 08:14

From now, drawing the whole thung out into at least the next tax year is easy. A couple of “lawyer on holiday”, christmas break and sick days, together with meeting each deadline right at the end and insisting on snail mail (for traceability), and you are in may.

Ignoramusgiganticus · 22/10/2018 08:17

I think it's worth a counter offer.

SillySallySingsSongs · 22/10/2018 08:18

They will increase their offer.

Not always they won't

Original poster

marinariv · 22/10/2018 08:18

I understand if we come back with a counter offer that will extinguish the original offer, however I can't imagine they will withdraw their initial offer completely, possibly just stick by the £30k offer. I just find it bizarre my lawyer wants to accept the first offer, without even trying to negotiate, he has made some valid points about pursuing it to court and that I will most likely get paid less, but surely we are able to negotiate the settlement, is it likely the other side will pull out completely and decide to go to court ? They have essentially admitted their wrongdoing.

OP posts:

Yura · 22/10/2018 08:24

@DeadGood solicitors will always ask for the absolute maximum
plus some first. you will hardly ever get that

greyspottedgoose · 22/10/2018 08:26

I was offered x amount by a previous employer, I asked for x+50% and they came back and said x was best & final so I took it, was worth asking though

Cautionsharpblade · 22/10/2018 08:29

I went through this a few years ago. £30k seemed to be a magic number as any settlement was tax free up to that amount.

I had a weak case and was advised not to let it actually go to tribunal. I can’t remember how much I asked for but was offered £24k. I countered and they offered £29k. I was told that once I accepted, even verbally, I was locked in and that until I’d accepted they could withdraw the other at any time.

If they’ve admitted wrongdoing you must have a strong case - I’d push for more.

It might be worth giving ACAS a call, I used them for the settlement as I was advised to represent myself not use a lawyer if it went to tribunal. They were lovely, very down to earth and sensible.

GrabEmByThePatriarchy · 22/10/2018 08:47

You need to get your lawyer's view on why they think the 30k is in your interests. She has said she doesn't think you'd get any more if you go to tribunal, so find out why. That's going to be more use to you than an abstract discussion on here, even with other lawyers chiming in. Because there are times when hold out for more would be good advice, and there are times when take the 30k and run would be good advice.

HoustonBess · 22/10/2018 08:58

Are paying your solicitor privately, or is it funded through legal expenses insurance?

If under LEI sometimes the lawyers are only funded to pursue a claim until a reasonable offer has been made, not necessarily spending more time trying to get the best possible outcome for the client.

Xenia · 22/10/2018 08:58

When I make a high first offer I always try to explain to the client not to get their hopes up as some will just assume that is the precise amount a claim is worth (I don't do employment law). In fact sometimes cases settle for tiny fractions of the sum as the law can be very uncertain or there is a big risk you might lose the case to factor in. It is not a precise science really, that's the trouble. I had a client made a reasonable offer the other week and I would have accept it. they wanted to try for a bit more and we did and we got a bit more that just showed he probably knew them better than I did and I was more than happy to try for the higher amount.

Someone mentioned the £30k tax free - they changed this a bit from this April. 2018. I have not followed this particularly as don't do employment law but if you have an employment case do always take advice on tax aspects - see eg www.gordonsllp.com/30000-tax-free-limit-still-available-employee-termination-payments/#

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