The client is defending a discrimination claim brought by multiple claimants against a limited company operating a public house. The client has been removed from personal liability following the filing of a notice of discontinuance, which is awaiting the court seal. The claimants have proposed either a settlement of £18,000 or a preliminary hearing to determine their ethnic status under the Equality Act 2010. The client is under significant financial pressure and has confirmed that neither he nor the business has the funds to continue defending the claim. Previous efforts to secure support from the pub’s landlord have failed. Counsel, Mr Samuel Okoronkwo, reiterated that the claimants do not meet the legal definition of Irish Travellers, as established by higher courts, and advised that the preliminary hearing proposal should be rejected.
The client must now decide whether to continue with the defence or seek a settlement. Counsel explained that responding only to the settlement offer would likely be insufficient and could weaken the defence. A coordinated strategy is needed, involving a reply to the preliminary hearing proposal, a request for further information and clarification, and a formal response to the settlement offer on a drop-hands basis. Counsel warned that a weak or incomplete response could encourage the claimants to pursue litigation more aggressively. The client is also considering liquidation of the business as a last resort, though this carries both civil and potential criminal risks.
Counsel advised that the most effective strategy is to respond comprehensively to all three points, demonstrating the strength of the defence and encouraging the claimants to settle. A properly drafted drop-hands offer may lead to a reduced settlement demand or full withdrawal of the claim. Counsel will speak with clerks to explore whether fee accommodations can be made to allow continued representation. The client confirmed his desire to retain counsel but acknowledged the financial constraints. Further instructions are awaited following the clerks’ discussion with the client.
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