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ARTICLE · 15 DECEMBER 2014

Commercial Dispute Resolution Newsletter - December 2014

This High Court decision penalising a party in costs for refusing to mediate, demonstrates that refusing mediation is a high risk strategy.

United KingdomLitigation, Mediation & Arbitration

ALTERNATIVE DISPUTE RESOLUTION

Dislike and mistrust between parties should not prevent them mediating

Garritt-Critchley & Ors v Ronnan & Anor (2014)

This High Court decision penalising a party in costs for refusing to mediate, demonstrates that refusing mediation is a high risk strategy. Although not compulsory, the courts remain keen on mediation and other ADR and parties should always bear this in mind when litigating.

The dispute was over whether or not a binding agreement had been reached. In the letter before claim, the claimant (Garritt-Critchley) indicated that it would be prepared to resolve the dispute via ADR. The defendants (Ronnan) indicated that they did not wish to engage in mediation and subsequently, that they were aware of the possible penalties for unreasonably refusing mediation, but that they were extremely confident of their position. They continued to refuse to mediate, even following directions to trial which encouraged the parties to

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