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ARTICLE · 18 JULY 2014

Beware Of The Dangers Of Refusing To Mediate

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

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The cost consequences of failing to take part in mediation have been highlighted in the recent High Court case of Garritt-Critchley.

United KingdomLitigation, Mediation & Arbitration
Caroline Greenwell
Caroline Greenwell

Phillip Garritt-Critchley & Others -v- Andrew Ronnan & Solarpower PV Limited [2014] EWHC 1774 (Ch) ("Garritt-Critchley")

The cost consequences of failing to take part in mediation have been highlighted in the recent High Court case of Garritt-Critchley, in which His Honour Judge Waksman QC (sitting in the Chancery Division, Manchester District Registry) awarded indemnity costs to the Claimants as a result of the Defendants' consistent refusal to mediate; an approach which the Court deemed unreasonable.

The decision highlights the caution which should be adopted by parties in litigation when responding to requests to mediate, and the risks of refusing the same.

The Facts

A dispute arose between the parties from the Defendants' failure to allot shares in a company in accordance with an alleged agreement. The issue for the Court to decide upon was whether or not there was a binding agreement between the parties.

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