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18
Oct
Alternative Dispute Resolution – Recent Developments
News

At Girlings Solicitors we are experts in Dispute Resolution.  We try to resolve your dispute with the least time, worry and cost to you.  Whatever the nature of your claim or dispute, our experienced team can assist you to resolve matters with the best outcome, including in respect of legal costs.  We can generally best assist you when you seek assistance at an early stage and before the issue of Court proceedings.

 

What is Alternative Dispute Resolution (ADR)?

 

ADR is the process whereby parties to litigation explore ways of settling disputes other than by going to trial.  It includes complaints procedures, mediation, round table settlement meetings and bilateral settlement negotiations.

 

Recent Developments.

 

There are two important recent developments in this area to note.

 

First, important rule changes in civil cases relating to Alternative Dispute Resolution (ADR) came into force on 1 October 2024.   These changes will have an impact on costs orders in legal proceedings.  They are designed to promote greater use of ADR by parties, i.e. looking at ways of settling disputes other than by going to trial such as mediation, round table settlement meetings and bilateral settlement negotiations. The Court intends to promote its policy objective by using costs sanctions to penalise parties who fail to engage properly with ADR. 

 

What are the Civil Procedure Rule Changes? 

 

The Civil Procedure Rules (the Rules) governing UK litigation are underpinned by the Court’s overriding objective to deal with cases justly and at proportionate cost.

 

The Rules have been amended to make it explicit that dealing with cases justly and at proportionate cost includes ‘promoting or using alternative dispute resolution’ and also to provide that the Court’s case management power includes ‘ordering or encouraging the parties to use, and facilitating the use of, alternative dispute resolution.’  Additionally, the Rules have been amended in other places to ensure that ADR is given a heightened focus when the Court is making orders for the management of cases.  Finally, the Rules governing costs awards have been updated to provide expressly that when the Court exercises its discretion on costs at the end of a case that it will have regard to whether ‘a party failed to comply with an Order for Alternative Dispute Resolution or unreasonably failed to engage in Alternative Dispute Resolution’.

 

The second development is the Court of Appeal decision in a case called Churchill v Merthyr Tydfil County Borough Council.  In this case (a nuisance claim) the Master of the Rolls ruled that the Courts have the power to order that (1) legal proceedings be paused and (2) parties must take part in non-Court based dispute resolution processes.  In Churchill the non-Court-based dispute resolution in issue was an internal complaints procedure operated by the Defendant local authority. The Court held that when exercising this power, the Court must consider all the circumstances of the case including the costs of mediation, the financial situation of the parties, the urgency of the matter, whether the case is suitable for mediation, whether both parties are legally represented and the reason why a party has rejected mediation.

For legal advice on this and other Dispute Resolution issues, please contact a member of the Dispute Resolution team for Businesses or Individuals.

 

Dispute Resolution for Businesses Dispute Resolution for Individuals

Before relying on this commentary please read the Reliance on information posted section in our Terms of Website Use in our Legal section. Please note that specialist advice should be taken in relation to any specific queries and the information above is provided for general information purposes only.

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