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Mediation
Problems, Solutions & Developments

The civil justice r= eforms

Mediation: a Commer= cial Court judge’s approach

ECHR and Mediation<= /a>

Lord Woolf’s Recommendations

Lord Woolf’s Recommendations

The court’s duty to manage cases under the CPR

ADR: An early examp= le

Kinstreet v Balmarg= o

R (Cowl) v. Plymout= h City Council

Cowl (2)

"We felt Railt= rack had not..."

Dunnett v Railtrack=

Halsey: new guidanc= e

Halsey guidelines: = six factors

Costs sanctions=

Burchell v Bullard = (1)

Burchell v Bullard = (2)

Two modern approach= es

2006: a prognosis

Future developments=

Government interest= in mediation

Mediation & CPR= : the story so far

The Perspective of = the Court of Appeal

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Mediation
Problems, Solutions & Developments
The Perspective fro= m the Court of Appeal
By Lord Justice Bro= oke
Vice-President, Cou= rt of Appeal (Civil Division)

The civil justice r= eforms
ADR in the Commerci= al Court 10 years ago
Parties required
to exchange lists o= f neutral individuals
to try in good fait= h to agree to ADR
To take serious ste= ps to resolve dispute by ADR
Case may be stayed = while these efforts are made

Mediation: a Commer= cial Court judge’s approach
“Mediation as a too= l for dispute resolution is not designed to achieve solutions which reflect the precise legal rights and obligations of the parties
But rather solution= s which are mutually commercially acceptable at the time of the mediation”

ECHR and Mediation<= /a>
The right of access= to a court can be waived
e.g. by an arbitrat= ion agreement
But such waiver mus= t be subjected to “particularly careful review”
to ensure that the = claimant is not “subject to constraint”
Deweer v Belgium (1= 980)

Lord Woolf’s Recommendations
1.  Where there is a satisfactory alterna= tive to the resolution of disputes in court, the courts should encourage the u= se of this alternative
Court staff and jud= ges must know about the forms of ADR that exist and what can be achieved
2.  At the case management conference and= the pre-trial review, the parties must state
whether ADR has bee= n discussed and
 if not, why not

Lord Woolf’s Recommendations
3.  In deciding on the future conduct of a case, the judge should be able to take into account the litigants’ unreasonable refusal to try ADR
4. The Government s= hould treat it as one of their responsibilities to make the public aware of the possibilities which ADR offers

The court’s duty to manage cases under the CPR
Active case managem= ent includes
encouraging the par= ties to co-operate with each other in the conduct of the proceedings
encouraging the par= ties to use an ADR procedure if the court considers that appropriate
facilitating the us= e of ADR;
helping the parties= to settle the whole or part of the case

ADR: An early examp= le
An early example o= f a court making ADR order despite resistance from one party in case where the costs were likely to outstrip amount involved if claim went to trial
Kinstreet Ltd v.Bal= margo Corporation Ltd
August 3, 1999 (Ard= en J)

Kinstreet v Balmarg= o
Very expensive, lon= g case
Serious concerns ab= out the cost of the trial
The judge ordered a= mediation just before the trial
The mediation was s= uccessful

R (Cowl) v. Plymout= h City Council
Lord Woolf:<= /td>
Insufficient attent= ion is being paid to the paramount importance of saving cost and reducing delay by avoiding recourse to judicial review procedures
The High Court shou= ld
scrutinise such app= lications very carefully
use its powers to e= nsure that the parties try to resolve their dispute with the minimum involvement of = the court

Cowl (2)
The court might hav= e to hold (of its own initiative) a hearing at which the parties could explain
what steps they had= taken to resolve or reduce their dispute by means alternative to court procedure

"We felt Railt= rack had not..."
We felt Railtrack h= ad not co-operated in furthering the overriding objective
A mediator might ha= ve been able to provide solutions which were beyond the powers of lawyers and courts to achieve
I said we knew of c= ases where intense feelings had arisen, but a skilled mediator had been able to achi= eve a settlement of the dispute on terms with which both parties were happy to live

Dunnett v Railtrack=
The message:=
Parties and their l= egal representatives should be alert if they "turn down out of hand"= the chance of ADR when suggested by the court
They may have to fa= ce "uncomfortable costs consequences"

Halsey: new guidanc= e
No power to order p= arties to mediate
Kinstreet approach = wrong
Courts can encourag= e them in the strongest terms
and can facilitate = mediation
Every lawyer should= routinely discuss with client whether dispute suitable for ADR

Halsey guidelines: = six factors
The nature of the d= ispute
The merits of the c= ase
The extent to which= other settlement methods have been attempted
Whether the costs o= f mediation would be disproportionately high
Whether any delay c= aused by a late mediation would have been prejudicial
Whether mediation h= ad a reasonable prospect of success

Costs sanctions=
Costs normally foll= ow the event
If successful party= acted unreasonably in refusing ADR, may be a different costs order
Court mustn’t inves= tigate why ADR process didn’t result in agreement

Burchell v Bullard = (1)
Small building disp= ute: claimant received £5000
The merits of the c= ase favoured mediation
The defendants were unreasonable in refusing to mediate
The cost of mediati= on would have been minimal compared with the cost of the litigation

Burchell v Bullard = (2)
No special order in= this case, but …
The parties cannot = ignore a proper request to mediate, made at any time
With court fees esc= alating, it may be folly to do so
In future, defendan= ts can expect little sympathy if they battle on unreasonably, regardless of the alternatives

Two modern approach= es
Commercial Court: s= trong steer
Clinical negligence= :
Parties shall consi= der whether case capable of resolution by ADR
If one party says “= no”, must be prepared to justify decision at end of trial
Duty to file witnes= s statement explaining reasons

2006: a prognosis
Recourse to ADR pro= cedures after legal proceedings have been started may be expected to increase
as litigation lawye= rs become more familiar with them. and
in particular with = the ways in which ADR may be used to complement the judicial process once proceedings have been started

Future developments=
The prospects for d= eveloping ADR falls within the remit of the Civil Justice Council
 Pilot schemes for mediation at courts<= /font>
The Government’s ap= proach:
“In future, Governm= ent Departments will only go to court as a last resort.
Instead, Government= legal disputes will be settled by mediation or arbitration whenever possible”

Government interest= in mediation
Public Service Agre= ement with the Treasury
PSA 5: “Our aim is = to enable proportionate dispute resolution
For people to avoid= legal problems where possible
And where not possi= ble, to be able to resolve their disputes effectively and proportionately”

Mediation & CPR= : the story so far
Duty of parties to = further the overriding objective
If they are unwilli= ng to mediate, must be prepared to explain reasons
Insurers and solici= tors are now obliged to understand the advantages and disadvantages of mediation
If not, they cannot= make well-informed decisions and may be penalised in costs

The Perspective of = the Court of Appeal
The End

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= =
Mediation
Problems, Solutions & Developments
<= /td> <= /td> <= /td> <= /td> <= /td> <= /td>
The Perspective from the Court of Appeal
By Lord Justice Brooke
Vice-President, Court of Appeal (Civil
D= ivision)
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fH1fHY3ZYoXU2lXOFu7YF87ZgZ1O523eqrVh5A3eGsZh5aXh5c1hH+bhG2ZeLvXfIpbeIzbi9PVg 6m3cxmVgB+5e7iVXsxVfCoZQC85gHEXiLRbhLj7d9jXh+I3fFF7VZA1Yj8zMYkhD3A4u4CMO4Ond 4gCW4wJ2XANO4IZVYIqlXAYOWyqO4M21YhNNY37j4MRlYyU23ev1YvVV3RJ23UeGVNhVYdlt4Zq1 XZyNRgDQ5E3m5E725E8G5VAW5VEm5VI25VNG5VRW5VVm5VZ25VeG5VguoCTm4lqm5fSl3iXOWifO 3jyOYstFVQjG2CqWzIAAADs= ------=_NextPart_01C67997.42A6AD40 Content-Location: file:///C:/CB5949C5/LADRSeminarBrooke_files/v3_slide0071.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="windows-1252" Mediation Latvia
The civil justice reforms
<= /td> <= /td> <= /td> <= /td> <= /td> <= /td> = <= /td> <= /td>
• AD= R in the Commercial Court 10 years
ago<= /font>
• Par= ties required
–<= /font> to = exchange lists of neutral individuals
–<= /font> to = try in good faith to agree to ADR
–<= /font> To= take serious steps to resolve dispute by
ADR<= /font>
• Ca= se may be stayed while these efforts
are = made
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<= /td> =
Mediation: a Commercial Court
judge’s approach
<= /td> = = <= /td> <= /td> <= /td>
• “Me= diation as a tool for dispute resolution
is = not designed to achieve solutions which
ref= lect the precise legal rights and
obl= igations of the parties
• But= rather solutions which are mutually
com= mercially acceptable at the time of the
med= iation”
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ECHR and Mediation
<= /td> <= /td> <= /td> <= /td> <= /td> <= /td> <= /td> <= /td> <= /td>
• Th= e right of access to a court can be
waiv= ed
–<= /font> e.g= . by an arbitration agreement
• Bu= t such waiver must be subjected to
“pa= rticularly careful review”
–<= /font> to = ensure that the claimant is not “subject to
cons= traint”
Deweer v Belgium (1980)
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Lord Woolf’s Recommendations
<= /td> <= /td> = = <= /td> <= /td>
1.=   Where there is a satisfactory alter= native to the
re= solution of disputes in court, the courts should
enc= ourage the use of this alternative
–<= /font> Cou= rt staff and judges must know about the forms of
ADR= that exist and what can be achieved
2.=   At the case management conference a= nd the
pre= -trial review, the parties must state
–<= /font> whe= ther ADR has been discussed and
–<= /font>  if not, why not
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Lord Woolf’s Recommendations
<= /td> = = <= /td>
3.<= span style=3D'mso-spacerun:yes'>  In deciding on the future conduct o= f a
cas= e, the judge should be able to take into
acc= ount the litigants’ unreasonable refusal
to try ADR
4. = The Government should treat it as one of
the= ir responsibilities to make the public
awa= re of the possibilities which ADR offers
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= =
The court’s duty to manage cases
under the CPR
<= /td> <= /td> <= /td> = <= /td> <= /td> <= /td> <= /td> <= /td>
Act= ive case management includes
• enc= ouraging the parties to co-operate with
eac= h other in the conduct of the proceedings
• enc= ouraging the parties to use an ADR
pro= cedure if the court considers that
appr= opriate
• fac= ilitating the use of ADR;
• he= lping the parties to settle the whole or part of
the = case
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ADR: An early example
<= /td> <= /td> <= /td> <= /td> = <= /td> <= /td> <= /td>
   An early example of a court making<= /font>
ADR= order despite resistance from one
par= ty in case where the costs were likely
to = outstrip amount involved if claim went
to t= rial
Kinstreet Ltd v.Balmargo Corporation Ltd
August 3, 1999 (Arden J)
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Kinstreet v Balmargo
<= /td> <= /td> = <= /td> =
Ver= y expensive, long case
Ser= ious concerns about the cost of the trial
The= judge ordered a mediation just before
the trial=
The= mediation was successful
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R (Cowl) v. Plymouth City Council
<= /td> <= /td> <= /td> <= /td> <= /td> <= /td> = <= /td> <= /td> <= /td> <= /td>
Lor= d Woolf:
• In= sufficient attention is being paid to the
pa= ramount importance of saving cost and
re= ducing delay by avoiding recourse to judicial
rev= iew procedures
• The= High Court should
–<= /font> scr= utinise such applications very carefully
–<= /font> us= e its powers to ensure that the parties try to resolve
the= ir dispute with the minimum involvement of the
cour= t
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Cowl (2)
<= /td> <= /td> = <= /td> = <= /td>
• The= court might have to hold (of its own
ini= tiative) a hearing at which the parties
cou= ld explain
–<= /font> wha= t steps they had taken to resolve or
red= uce their dispute by means alternative to
cou= rt procedure
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Dunnett v Railtrack
<= /td> <= /td> = <= /td> <= /td> <= /td> <= /td>
1. We = felt Railtrack had not co-operated in
fur= thering the overriding objective
2. A = mediator might have been able to provide
sol= utions which were beyond the powers of
law= yers and courts to achieve
– I = said we knew of cases where intense feelings had
ari= sen, but a skilled mediator had been able to
ach= ieve a settlement of the dispute on terms with
whi= ch both parties were happy to live
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Dunnett v Railtrack
<= /td> = <= /td> <= /td> =
The= message:
• Par= ties and their legal representatives
sho= uld be alert if they "turn down out of
han= d" the chance of ADR when suggested
by = the court
• The= y may have to face "uncomfortable
cos= ts consequences"
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Halsey: new guidance
<= /td> <= /td> = = <= /td> <= /td> <= /td>
• No = power to order parties to mediate
• Kin= street approach wrong
• Cou= rts can encourage them in the
str= ongest terms
–<= /font> and= can facilitate mediation
• Ev= ery lawyer should routinely discuss with
cl= ient whether dispute suitable for ADR
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Halsey guidelines: six factors
<= /td> <= /td> <= /td> <= /td> <= /td> <= /td> = <= /td>
• The= nature of the dispute
• The= merits of the case
• The= extent to which other settlement methods
hav= e been attempted
• Whe= ther the costs of mediation would be
dis= proportionately high
• Wh= ether any delay caused by a late mediation
wou= ld have been prejudicial
• Wh= ether mediation had a reasonable prospect
of s= uccess
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Costs sanctions
<= /td> <= /td> = <= /td> <= /td> <= /td>
• Cos= ts normally follow the event
• If = successful party acted unreasonably in
ref= using ADR, may be a different costs
orde= r
• Cou= rt mustn’t investigate why ADR
pro= cess didn’t result in agreement
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Burchell v Bullard (1)
<= /td> <= /td> <= /td> = = <= /td> <= /td>
• Sma= ll building dispute: claimant received
£500= 0
• The= merits of the case favoured mediation
• The= defendants were unreasonable in
ref= using to mediate
• The= cost of mediation would have been
min= imal compared with the cost of the
liti= gation
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Burchell v Bullard (2)
<= /td> <= /td> = <= /td> <= /td> <= /td>
• No = special order in this case, but …
• The= parties cannot ignore a proper request
to = mediate, made at any time
• Wit= h court fees escalating, it may be folly
to d= o so
• In = future, defendants can expect little
sym= pathy if they battle on unreasonably,
reg= ardless of the alternatives
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Two modern approaches
<= /td> <= /td> = <= /td> <= /td> <= /td> <= /td>
1. Com= mercial Court: strong steer
2. Cli= nical negligence:
• Par= ties shall consider whether case
cap= able of resolution by ADR
• If = one party says “no”, must be prepared
to = justify decision at end of trial
• Dut= y to file witness statement explaining
reas= ons
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2006: a prognosis
<= /td> <= /td> = <= /td> = <= /td> <= /td>
• Rec= ourse to ADR procedures after legal
pro= ceedings have been started may be
exp= ected to increase
–<= /font> as = litigation lawyers become more familiar
wit= h them. and
–<= /font> in = particular with the ways in which ADR may
be = used to complement the judicial process
onc= e proceedings have been started
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Future developments
<= /td> <= /td> <= /td> = <= /td> <= /td> <= /td> <= /td>
• The= prospects for developing ADR falls
wi= thin the remit of the Civil Justice Council
•  Pilot schemes for mediation at court= s
• The= Government’s approach:
–<= /font> “In= future, Government Departments will only
go = to court as a last resort.
–<= /font> Ins= tead, Government legal disputes will be
set= tled by mediation or arbitration whenever
poss= ible”
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Government interest in mediation
<= /td> <= /td> <= /td> <= /td> = <= /td> <= /td>
• = Public Service Agreement with the
T= reasury
• PSA 5: “Our aim is to enable proportionate
dis= pute resolution
–<= /font> For= people to avoid legal problems where
poss= ible
–<= /font> And= where not possible, to be able to resolve
the= ir disputes effectively and proportionately”
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Mediation & CPR: the story so far
<= /td> <= /td> = <= /td> <= /td> <= /td>
• Dut= y of parties to further the overriding
obje= ctive
• If = they are unwilling to mediate, must be
pre= pared to explain reasons
• In= surers and solicitors are now obliged to
und= erstand the advantages and
dis= advantages of mediation
• If = not, they cannot make well-informed
dec= isions and may be penalised in costs
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= <= /td>
The Perspective of the Court of
Appeal
T= he End
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Mediation
Problems, Solutions & Developments
•The Perspective from the Court of Appeal
•
•By Lord Justice Brooke
•
•Vice-President, Court of Appeal (Civil Division)
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igTSyCWVbNKhI2tK8kkmp3RSyiuJzBJJLaPkEsovqcRyyzG7JBNMK70MM000zVSzTTbLjPPMKg2a TSg7acsPv/v+c8rPHAcMVMdAV2wNxUJhMxTRQxVtNNFHGYV00UkdjdRSSiWtFNNLNe000085BXXT UT0N1VRSRS0V1VNVbfXT2SDI00XcXqxRN+FsxdXG43htioOqlJsuKuvoK7Y+Y5E9VtlkmV3W2Wah fVbaaKmtaU89seVzv239A3TQb7EKCAA7 ------=_NextPart_01C67997.42A6AD40 Content-Location: file:///C:/CB5949C5/LADRSeminarBrooke_files/slide0071.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Mediation Latvia
The civil justice reforms
•ADR in the Commercial Court 10 years <= /span>ago
•Parties required
–to exchange lists of neutral individuals
–to try in good faith to agree to ADR
–To take serious steps to resolve dispute by ADR
•Case may be stayed while these efforts are made
–<= /span>
–<= /span>
–<= /span>
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Mediation: a Commercial Court judge’s approach
•“Mediation as a tool for dispute resolution is not designed to achieve solutions which reflect the precise legal rights and obligations of the parties
•But rather solutions= which are mutually commercially acceptable at the time of the mediation”
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ECHR and Mediation
= 226;The right of access to a court can be waived
&= #8211;e.g. by an arbitration agreement
= 226;But such waiver must be subjected to “particularly careful review”
R= 11;to ensure that the claimant is not “subject to constraint”
–Deweer v Belgium (1980)
•
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Lord Woolf’s Recommendations
•1.  W= here there is a satisfactory alternative to the resolution of disputes in court, the courts should= encourage the use of this alternative <= /span>
–Court staff and judges must know about the forms o= f ADR that exist and what can be achieved
•2.  A= t the case management conference and the pre-trial review, the parties must state
–whether ADR has been discussed and
– if n= ot, why not
•
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Lord Woolf’s Recommendations
•3.  In deciding on the future conduct= of a case, the judge should be able to take into account the litigants= 217; unreasonable refusal to try ADR
•4. The Government should treat it as one of their responsibilities to make the public aware of the possibilities which ADR offers= 3;
<= span style=3D'visibility:hidden'>•
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The court’s duty to manage cases under the CPR
•Active case management includes
R= 26;encouraging the parties to co-operate with = each other in the conduct of the proceedings <= /span>
R= 26;encouraging the parties to use an ADR procedure if the court considers that appropriate
R= 26;facilitating the use of ADR;
R= 26;helping the parties to settle the whole or part of= the case
(1)
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ADR: An early example
– An early example of a court making ADR order despite resistance from one party in case where the costs were likely to outstrip amount involved if claim went to trial
= 211;
= •Kinstreet Ltd v.Balmargo Corporation Ltd
•August 3, 1999 (Arden J)
• <= /div>
•
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Kinstreet v Balmargo
•Very expensive, long case
•Serio= us concerns about the cost of the trial
•The j= udge ordered a mediation just before the trial
•The mediation was successful
•
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R (Cowl) v. Plymouth City Council
•Lord Woolf:
•Insufficient attention is being paid to the paramount importance of saving cost and reducing delay by avoiding recourse to judicial review procedures
•The High Court should
–scrutinise such applications very carefully <= /span>
<= span style=3D'font-size:86%'>–use its powers to ensure that the parties try to r= esolve their dispute with the minimum involvement of the court=
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Cowl (2)
•The court might have = to hold (of its own initiative) a hearing at which the parties could explain
<= span class=3DB1B style=3D'position:absolute;left:-3.67%'>–what ste= ps they had taken to resolve or reduce their dispute by means alternative to court procedure
•
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•
1.We felt Railtrack had not co-operated in furthering the overriding objective
2.A mediator might have been able to provide = solutions which were beyond the powers of <= /span>lawyers and courts to achieve 
–I said we knew of cases where intense feelings had= arisen, but a skilled mediator had been able to achieve a settlement of the dispute on terms with = which both parties were happy to live <= /span>
•
•
Dunnett v Railtrack
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Dunnett v Railtrack
–The message:
•Parties and their le= gal representatives should be alert if they "turn down out of= hand" the chance of ADR when suggested by the court
•They may have to face "uncomfortable costs consequences"
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Halsey: new guidance
•No power to order pa= rties to mediate
•Kinstreet approach wrong
•Courts can encourage= them in the strongest terms
–and can facilitate mediation
•Every lawyer should routinely discuss with client whether dispute suitable for ADR
•
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Halsey guidelines: six factors
<= span style=3D'font-size:88%'>•The nature of the dispute
<= span style=3D'font-size:88%'>•The merits of the case
•The extent to which other settlement methods have been attempted
<= span style=3D'font-size:88%'>•Whether the costs of mediation would be disproportionately high
<= span style=3D'font-size:88%'>•Whether any delay caused by a late mediation would have been prejudicial
<= span style=3D'font-size:88%'>•Whether mediation had a reasonable prospect of success
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Costs sanctions
•Costs normally follow the event
•If successful party acted unreasonably= in refusing ADR, may be a different costs order
•Court mustn’t investigate why ADR process didn’t result in agreement
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Burchell v Bullard (1)
•Small building dispu= te: claimant received £5000
<= span class=3DBB style=3D'position:absolute;left:-3.75%'>•The merit= s of the case favoured mediation
•The defen= dants were unreasonable in refusing to mediate •The cost = of mediation would have been minimal compared with the cost of th= e litigation
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Burchell v Bullard (2)
<= span class=3DBB style=3D'position:absolute;left:-4.43%'>•No specia= l order in this case, but …
•The partie= s cannot ignore a proper request to mediate, made at any time •With cour= t fees escalating, it may be folly to do so •In future, defendants can expect little sympathy if they battle on unreasonab= ly, regardless of the alternatives
<= span style=3D'visibility:hidden'>•
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