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ARTICLE · 15 NOVEMBER 2013

Silence Is Costly: Consequences Of Ignoring An Invitation To Mediate

Davenport Lyons
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The Court of Appeal recently handed down judgment in the case of PGF II SA v OMFS CO 1 Ltd, providing strong guidance on the duty to take part in alternative dispute resolution.

United KingdomLitigation, Mediation & Arbitration
Nick Goldstone
Nick Goldstone

On 23 October 2013, the Court of Appeal handed down judgment in the case of PGF II SA v OMFS CO 1 Ltd, providing strong guidance on the duty to take part in alternative dispute resolution (ADR).

Background to the case

PGF, the landlord, filed a dilapidations claim against OMFS, the tenant, for £1.9 million, in respect of commercial office premises in London.  OMFS denied liability entirely.  Trial was scheduled for 11 January 2012.

In April 2011, PGF made a Part 36 offer to settle, at £1.25m.  At the same time, OMFS also made a Part 36 offer to settle, at £700,000.

In July 2011, PGF invited OMFS to mediate the matter.  This invitation was re-iterated on 1 October.  The invitations were ignored.

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