Private Sector

Background

A national agency in the public eye faces a litigation dilemma: advised that it has a 65% chance of recovering £millions of public funds in a professional negligence claim, its board is conscious of the huge costs liability and reputational damage that would accompany a defeat.

Outcome

Recognising that mediation offers the chance to control the risk, the directors balance the competing interests of recovering and saving public money by establishing settlement parameters to reflect their chosen risk profile. The eventual settlement reflects this: substantial damages, managed costs and no reputational harm.