Former employers “win” but suffer massive legal costs


A settlement offer of £1,500,000 was made by the employees in total but this was declined.

Author: Jason Williams
Reading time: 1 minute

This article is 5 years old.

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An interesting recent case in the Commercial Court is worthwhile mentioning because it highlights the risk of turning down an offer for damages (compensation) in high value disputes.

The former employer sued 2 ex-employees for £15,000,000 for misuse of copied data files made by the duo before they left.

A settlement offer of £1,500,000 was made by the employees in total but this was declined.

This offer could not be disclosed to the trial judge at any point during the NINE DAY hearing until after judgment is given.

The court awarded in favour of the employer.  BUT the court only awarded compensation of just two pounds!  A quid for each ex-employee!  This is because they could not prove actual financial loss.

The court is then told of the £1,500,000 offer that was declined which meant that the employer won in principle but will stand to lose a six-figure sum in legal costs.

Jason Williams

Legal Advisor

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