What Is A Calderbank Offer?

Summary

In legal negotiations and settlements, there are different ways to help disputing parties reach fair resolutions without going to court, like alternative dispute resolution. One of these tools, commonly used in cases like commercial disputes is the Calderbank offer. Calderbank offers can be a good way to encourage another party to accept a settlement while managing the possible risks and costs of making an offer. During disputes, both parties need to understand what it means to make or receive a Calderbank offer, and the consequences of rejecting one, which we'll cover in this article. The Calderbank offer originated from the landmark case of [Calderbank v Calderbank [1975] 3 All ER 333 (EWCA)](https://en.wikipedia.org/wiki/Calderbank_v_Calderbank). The main issue in the case was the division of assets during the divorce of Mr. Calderbank and Mrs. Calderbank. Before the court hearing, Mrs. Calderbank offered to give Mr. Calderbank a property, which he declined. However, he only went on to be awarded £10,000 by the court. Subsequently, Mrs Calderbank argued that her ex-husband shouldn’t be able to claim legal costs because he had previously declined what was a reasonable pre-trial.

Key information

• •Be marked as “without prejudice save as to costs.”
• •Refer to the principles from the Calderbank v Calderbank case
• •Be clear and specific in its terms
• •Be acceptable to the other party
• •Explain why the offer should be accepted
• •Set a clear deadline for responding, usually within a reasonable time
• •State that if the offer is rejected, it can be used in court to ask for extra costs to be paid.
• •In legal negotiations and settlements, there are different ways to help disputing parties reach fair resolutions without going to court, like alternative dispute resolution. One of these tools, commonly used in cases like commercial disputes is the Calderbank offer.
• •Calderbank offers can be a good way to encourage another party to accept a settlement while managing the possible risks and costs of making an offer.
• •During disputes, both parties need to understand what it means to make or receive a Calderbank offer, and the consequences of rejecting one, which we'll cover in this article.
• •The Calderbank offer originated from the landmark case of [Calderbank v Calderbank [1975] 3 All ER 333 (EWCA)](https://en.wikipedia.org/wiki/Calderbank_v_Calderbank).
• •The main issue in the case was the division of assets during the divorce of Mr. Calderbank and Mrs. Calderbank. Before the court hearing, Mrs. Calderbank offered to give Mr. Calderbank a property, which he declined. However, he only went on to be awarded £10,000 by the court.

Practical guidance

• •Source: [What Is A Calderbank Offer?](https://lawhive.co.uk/knowledge-hub/litigation/what-is-a-calderbank-offer)

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