Without prejudice offers of settlement

Guidance on the effect of the phrase ‘without prejudice save as to costs’ in a letter of compromise was given by HHJ Peter Coulson QC in Baris Ltd v Kajima Construction (Europe) Ltd [2006] EWCH 31 (TCC). The offer was made in respect of a proposed settlement of sums payable under an adjudication award, and the case may be of some interest to arbitrators faced with an argument that the claim has been compromised in response to a letter written ‘without prejudice’ and that the letter is admissible in the hearing.