Document ID: chunk:federal_register_of_legislation:F2018C00409:clause:1_2
Version: federal_register_of_legislation:F2018C00409
Segment Type: clause
Provision Reference: sch 1 cl 2
Character Range: 59415–60238

2  Monetary claims covered by this policy are to be settled in accordance with legal principle and practice, whatever the amount of the claim or proposed settlement. A settlement on the basis of legal principle and practice requires the existence of at least a meaningful prospect of liability being established. In particular, settlement is not to be effected merely because of the cost of defending what is clearly a spurious claim. If there is a meaningful prospect of liability, the factors to be taken into account in assessing a fair settlement amount include:
 (a) the prospects of the claim succeeding in court
 (b) the costs of continuing to defend or pursue the claim, and
 (c) any prejudice to Government in continuing to defend or pursue the claim (eg a risk of disclosing confidential government information).