High Court: Unreasonable refusal to ADR does not attract an order for costs on an indemnity basis
In the case of Richards & Anor v Speechly Bircham LLP & Anor (Consequential Maters) [2002] EWCH 1512 (Comm) HHJ Russen QC (sitting as a judge of the…
In the case of Richards & Anor v Speechly Bircham LLP & Anor (Consequential Maters) [2002] EWCH 1512 (Comm) HHJ Russen QC (sitting as a judge of the…
This latest High Court case again demonstrates the pitfalls for litigants who unreasonably refuse to engage in Alternative Dispute Resolution such as mediation to resolve issues. Parties that fail to do so risk be punished by the court when it comes to costs.
If a party completely foregoes mediation will that party be punished in costs? The High Court judgment highlights that although the court cannot compel parties to mediate, an unreasonable refusal to do so is likely to result in costs penalties for a defaulting party. The costs risks of unreasonably refusing to mediate or not responding to a mediation proposal may be severe.
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