Received a Small Claims Settlement Offer from defendant - what to do now?

[ostia_antica]

Hi,

I made a small claims case against an airline for flight delay compensation, which they initially defended. I've today received a letter from them as a "Settlement Offer": not the full amount I was claiming for but close. But I have not received any documents/letters about this from the court (yet).

The letter says "The defendant would like to amicably settle this claim case by paying XXX to YYY as full and final settlement. By offering this out of court settlement offer we would like to save the cost and effort of both parties along with court officials." But it does not say how to accept this offer, or how payment would be made, or any dates by which payment would be made.

Do I now need to communicate directly with the defendant to accept the offer and get the money? Or do I need to wait for the court to send me some sort of official document first? When a settlement offer is made, is the court made aware of it also? I understand there is something called an "order for payment", but I assume that's only if the defendant agrees to pay the *full* amount of the claim, which they are not doing in this case,

I'm worried about having to communicate directly, because previously, the airline was extremely uncommunicative to all my emails and letters (which is why I had to make a small claims claim in the first place). What if they just ignore me and do not send me the cheque at all? What happens then?

Thanks for any advice!

[R0b]

No the court won't be aware, you will need to communicate directly with the airline or their solicitors if they have instructed a firm.

I'm curious though, were you claiming the amount you were entitled to under the applicable regulations? Does the amount include any coverage of the application fees you've paid? Is there a risk that you might lose if it were to go to court in front of a judge?

Whether you want to accept the settlement is up to you but any offer of settlement should clearly state when the funds are to be paid. Usually, it is by way of cheque or by bank transfer within 14 days of the offer being accepted. As their offer doesn't stipulate this, it would be wise to reject their offer and instead reiterate any offer of settlement hat you feel appropriate, including the time period to pay.

If they don't send you the cheque within the agreed period, you can re-submit a claim against them for non payment. Any settlement agreement is a legally binding contract so non-payment would be a breach of contract.

[ostia_antica]

Thanks, I greatly appreciate the help.

Yes I was claiming the amount I was entitled to under EU Flight Delay Compensation rules. I assume those rules become invalid post 29 March Brexit, so I'd like to get it done & dusted sooner rather than later.

I have not paid, or been charged, any fees so far: I get Help With Fees due to my income/benefits status. I don't know if I would be charged if I actually went to a court hearing though. The settlement offer includes court cost provisions (£70 court fee + £70 legal rep's costs) although the final total is still less than my initial claim.

If I did go to court and won (I probably would, barring some technicality) I guess I would have to pay additional bailiff fees to actually get the money, so that makes this settlement offer more appealing.

I think I will write back agreeing to the settlement, but making it clear it is entirely dependant on receiving the cheque by a given date, otherwise court proceedings will continue. Are there any templates for "acceptance of settlement offer" letters?

[R0b]

If you are happy with the setlement then go ahead and accept it, but just to let you know, if you are intending on accepting the offer but provided that payment is made by a certain date, that will be deemed as a counter offer. This is because you are altering the terms of their offer by stating that payment must be made by X date.

I don't have a particular template for accepting an offer but there's no legal way to put it other than you are accepting their terms or you are rejecting it, which in this case this is what you would be doing and then making a counter offer. If they accept your counter proposals you will need to inform the court that you have settled the case - you should only do this once the settlement has been agreed.

[CLL1]

If you are happy with the setlement then go ahead and accept it, but just to let you know, if you are intending on accepting the offer but provided that payment is made by a certain date, that will be deemed as a counter offer. This is because you are altering the terms of their offer by stating that payment must be made by X date.

I don't have a particular template for accepting an offer but there's no legal way to put it other than you are accepting their terms or you are rejecting it, which in this case this is what you would be doing and then making a counter offer. If they accept your counter proposals you will need to inform the court that you have settled the case - you should only do this once the settlement has been agreed.

Yes, and no. Enquiring as to the terms of the offer isn't a counter-offer - it's just clarifying. Don't reject the offer, simply reply and ask for confirmation of when the offered amount will be paid.