Churchill v Merthyr Tydfil: Will The Courts Be Able To Require Parties To Mediate?

Setting out what will happen should a dispute arise between parties is frequently dealt with at contract stage with agreed terms for alternative dispute resolution. In practice, formal proceedings quickly ensue when issues occur further down the line. The Court of Appeal in Churchill v Merthyr Tydfil has been asked to consider whether parties should instead be required to explore alternative dispute resolution avenues before bringing a claim to the courts.

The decision will affect any party who wants to have their day in court but, importantly, could bring welcome relief to organisations that are facing a heavy caseload of claims that might instead be re-directed to a less costly disputes process – whether that is an in-house complaints process or court-mandated mediation. In particular, local authorities and social landlords will be watching this decision closely. We consider the key elements of the case and the potential outcomes expected.