When you have a dispute with someone which escalates into legal proceedings your solicitor will often advise you that you should consider alternative dispute resolution. Put simply, this means to consider taking steps to resolve the dispute without it escalating to a full trial. This may involve making offers of settlement, attending mediation or coming together for a round table meeting to name but a few. It doesn’t matter whether the case involves a breach of contract, negligence, a neighbour dispute, or something else, you will usually find yourself receiving this advice. But is it really necessary?
In 2023 the Court of Appeal stated in the case of Churchill v Merthyr Tydfil County Borough Council that the court can order parties to engage in a non-court-based dispute resolution process or stay the claim for this to happen. Following this, on 1st October 2024 the Civil Procedure Rules, the set of rules which govern civil litigation, were amended to state that the overriding objective includes ‘promoting or using alternative dispute resolution’. The overriding objective is in place to enable the court to deal with cases justly and at proportionate cost and parties are required to help the court to further the overriding objective.
Now of course, the Civil Procedure Rules do not specifically state that the parties must engage in mediation, however, this should now be something that is considered even more so by parties in the litigation process. The need to try to settle a case without reaching a trial is more important than ever before, whether that be by mediation or other means.
It is not yet known whether there will be any sanctions for parties refusing to engage in alternative dispute resolution or what these sanctions might be, however, one possibility would be costs consequences for the refusing party, regardless of whether their case is successful.
So, do you really need to mediate? Not exactly, mediation itself is not a necessity for any case. However, parties certainly, now more than ever, need to take steps to settle a case before trial, whatever form that might take. If they don’t then the court could order parties to do this in any event and with sanctions for refusal still unknown, it’s simply not worth the risk just to have your “day in court”.
If you are involved in a dispute and struggling to reach a resolution our dispute resolution specialists may be able to help. Call us today on 0161 696 6178.
By Alysia Leigh, graduate paralegal
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