Dispute Resolution Update: To Mediate, Or Not To Mediate, That Is The Question

The Irish Court of Appeal's recent decision in  Atlantic Shellfish Limited & anor -v- The County Council of the County of Cork & ors¹ provides helpful guidance on the likely circumstances when a court will exercise its discretion to direct parties to litigation to engage in Alternative Dispute Resolution ("ADR").

The Rules

The Irish Court Rules permit the Courts on the application of any party to litigation, or on the Court's own motion, where appropriate, to order that any issue in the proceedings be resolved by ADR.  ADR includes mediation or conciliation but not arbitration.

The Court Rules also provide that where a party to litigation refuses or fails without good reason to participate in ADR, that party may expose themselves to the risk of failing to obtain an order for the full extent of their cost. This is even if they successfully pursue or defend a claim.