The employee was dismissed. After a compromise of the claims and counter claims, the employers sought damages from their accountants for failing to spot the losses. The accountants then sought to recover the damages awarded from the employee, not having been party to the settlement. Did the settlement extinguish his liability?
Held: The case of Heaton applied. Whether a settlement was a compromise of such a claim, is a matter of construction, having regard to all the relevant surrounding facts of each case. The settlement appeared to have been intended to be a broad brush approach. In this case it could not be read to be a full settlement of all losses.
Judges:
Lord Bingham of Cornhill Lord Mackay of Clashfern Lord Steyn Lord Hope of Craighead Lord Rodger of Earlsferry
Citations:
[2002] UKHL 16
Links:
Jurisdiction:
England and Wales
Citing:
Cited – Heaton and Others v AXA Equity and Law Life Assurance Society plc and Another HL 25-Apr-2002
The claimant had settled one claim in full and final satisfaction against one party, but then sought further damages from the defendant, for issues related to a second but linked contract. The defendant claimed the benefit of the settlement.
Cited – Jameson and Another v Central Electricity Generating Board and others HL 16-Dec-1998
A joint tortfeasor’s concurrent liability was discharged entirely by a full and final settlement and compromise of the claim against the other tortfeasor if in respect of the same harm. A dependency claim made by the claimant’s executors could not . .
Lists of cited by and citing cases may be incomplete.
Damages, Professional Negligence
Updated: 06 June 2022; Ref: scu.171308