Framlington Group Ltd & Anor v Barnetson

Framlington Group Ltd & Anor v Barnetson

The 'without prejudice' rule applies to negotiations arising out of a dispute as to contractual entitlement on early dismissal, where both parties reasonably contemplated litigation if compromise was not reached, even if litigation had not yet been commenced or threatened. The judge erred in confining the rule to situations where litigation was imminent or threatened.

Parties
Appellant: Framlington Group Limited; Appellant: AXA Framlington Group Limited; Respondent: Ian Barnetson
Jurisdiction
England and Wales
Judgment Date
24 May 2007
Procedural Posture
Civil Appeal / Appeal From High Court to Court of Appeal
Outcome
appeal allowed
Legal Topics
Without Prejudice Communications, Settlement Privilege, Wrongful Dismissal, Contract Variation
Employment Law Civil Procedure Without Prejudice Communications Settlement Privilege Wrongful Dismissal Contract Variation

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Parties

Framlington Group Limited

Appellant

AXA Framlington Group Limited

Appellant

Ian Barnetson

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether the 'without prejudice' rule applies to settlement negotiations prior to litigation or threat of litigation
  2. 2 Whether the communications between Mr Barnetson and Framlington were privileged as 'without prejudice'

Ratio Decidendi

The 'without prejudice' rule applies to negotiations arising out of a dispute as to contractual entitlement on early dismissal, where both parties reasonably contemplated litigation if compromise was not reached, even if litigation had not yet been commenced or threatened. The judge erred in confining the rule to situations where litigation was imminent or threatened.

Court Disposition

appeal allowed

Orders

  • Mr Barnetson to amend and re-serve his first witness statement and exhibits, omitting privileged material as sought by Framlington.