http://BusinessAndLegal.ie A look at the use of Calderbank letters and lodgments to settle litigation

1. Calderbank letters and
lodgments
Useful litigation tools

2. Are you a reluctant party to legal proceedings?
● Concerned about rising legal costs?
● Anxious to settle?
● Two useful litigation tools:
1. Calderbank letter
2. Lodgement
The purpose of these devices is to attempt to force a plaintiff to seriously consider
settling the case, rather than going ahead to the high risk, high cost venue of Court

3. Calderbank letter
● English family law case, “Calderbank v Calderbank”
● Offer was made “without prejudice except as to costs”
● This offer would enjoy the normal “without prejudice” protection
● But could be referred to when the Judge came to the question of costs, if the
without prejudice offer was not accepted
● Clearly, this letter would make the Plaintiff think carefully about proceeding
● If he does not do better than the offer, then he may be at risk in relation to
costs

4. The Lodgment
● Defendant can make a lodgment in Court in settlement of the case
● If this is not accepted, and the case goes ahead, the Plaintiff will have to be
awarded a bigger sum than the lodgement
● Otherwise, the Plaintiff will have to pay the Defendant’s costs from the date of
lodgment
● This would include cost of the trial, barristers’ fees, solicitors’ fees, experts’
fees etc
● Plaintiff will have to carefully consider any lodgment

5. Difference between lodgment and Calderbank
1. Timing-the Calderbank letter can be use virtually anytime, including up to the
trial
2. Court’s discretion-wide in relation to Calderbank, none in relation to the
lodgment