Defamation Settlement: How Cases Settle Out of Court in the UK

The vast majority of UK defamation disputes — well over 90% — never reach a full trial. They are resolved through negotiated settlements. Understanding how settlement works, what terms are available, and how to negotiate effectively can make the difference between a good outcome and a protracted, expensive litigation.

Why Most Defamation Cases Settle

Defamation litigation is uniquely expensive, unpredictable, and time-consuming. Both parties have strong incentives to resolve disputes without a full trial:

• The claimant faces the risk of losing at trial (and paying the defendant's costs), the ordeal of giving evidence, the public exposure of the full proceedings, and years of uncertainty.
• The defendant faces the same cost risks, the prospect of a large damages award, a public judgment against them, and an injunction preventing future publication.
• Both parties benefit from certainty and from avoiding the psychological burden of prolonged litigation.

Courts also actively encourage settlement through the requirement to engage in pre-action correspondence, and through cost sanctions for unreasonable refusal to participate in alternative dispute resolution (ADR).

When Can Settlement Happen?

Settlement can be reached at any stage:

• Pre-action: After a letter of claim is sent but before proceedings are issued. This is the most common stage for settlement, as both parties have the lowest costs and the most flexibility.
• Post-issue, pre-trial: After proceedings are issued, often following disclosure of evidence. Settlement at this stage is still common, though costs are higher.
• During trial: Cases occasionally settle mid-trial, sometimes dramatically. The claimant reading their evidence and facing cross-examination can prompt renewed settlement discussions.

What a Settlement Can Include

Unlike a court judgment (which is limited to what courts can order), a negotiated settlement can include a much wider range of terms. Settlements in defamation cases commonly include:

Financial Compensation

The most obvious element. The amount will depend on the strength of the claim, the extent of publication, the seriousness of the allegation, and the parties' relative costs positions. Settlements are often confidential, so neither party discloses the amount.

Removal of Content

The defendant agrees to remove the defamatory content from all locations — website, social media, and any cached or archived copies where possible.

Retraction and Correction

The defendant publishes a correction and/or retraction, acknowledging that the statements were false. The placement, prominence, and wording of the retraction are typically negotiated in detail.

Apology

A genuine, agreed apology. Courts cannot compel an apology (only a correction), so an agreed apology in settlement is often more valuable to the claimant than a court-ordered summary of judgment.

Non-Disparagement Clause

The defendant agrees not to make any further negative or derogatory statements about the claimant. This is a forward-looking protection.

Confidentiality (NDA)

The terms of the settlement, and sometimes the existence of the settlement itself, are kept confidential by mutual agreement. Both parties often prefer this to public proceedings.

Costs Contribution

The defendant pays all or part of the claimant's legal costs, in addition to any damages.

Without-Prejudice Communications

Settlement negotiations are typically conducted on a without-prejudice basis. This means that offers and concessions made in the course of settlement discussions cannot be disclosed to the court or used in evidence if the case proceeds to trial. Without-prejudice protection encourages both parties to speak candidly about the issues without fear that their openness will be used against them.

"Without prejudice save as to costs" (WPSATC) correspondence is a variant: the terms of any settlement offer can be shown to the judge after trial when deciding who should pay costs. Making a realistic WPSATC offer early in proceedings can significantly improve your costs position even if the offer is refused and the case proceeds to trial.

Part 36 Offers

A formal offer to settle under Part 36 of the Civil Procedure Rules carries powerful costs consequences. If a claimant refuses a Part 36 offer and then fails to beat it at trial, they may face severe costs sanctions — paying the defendant's costs from the date the offer was made, plus interest. Understanding how to use (and respond to) Part 36 offers is a significant strategic tool in defamation proceedings.

Related reading: How much compensation can you get for defamation? | Cease and desist letters for defamation | How much does a defamation lawyer cost?