The Risks Of Refusing To Mediate

There have been a number of cases where the courts have expressed a desire to encourage parties to mediate especially where the costs of resolving the dispute are likely to be disproportionate to the amounts at stake. The Court of Appeal's decision in the case of Rolf v De Guerin [2011] EWCA Civ 78 provides a further good example of this judicial encouragement.

The Facts

Mrs Rolf entered into a contract with Mr Guerin to build a garage for £34,000 and a loft for £18,000. It was agreed that 25% would be paid in advance and the rest in weekly instalments. The building works did not go smoothly, primarily due to the tendency of Mrs Rolf's husband to interfere with the works. This, together with the eventual cessation of weekly payments, resulted in a repudiation of the contract by Mrs Rolf in August 2007. At the time of this repudiation, the garage had been substantially constructed but the loft had barely been started. Following the breakdown of the contract, Mrs