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The following cases concern a failure to negotiate rather than failure to mediate or use ADR as such. They display a consistent approach from the courts to failures to further the overriding objective.

Mars v Teknowlege (No 2)

The costs order reflected the claimant’s unreasonable conduct in accordance with CPR 44.3(5), and in particular the fact that the claimant had issued in a heavy handed manner, at a time when the defendant was striving to settle the dispute.

Liverpool City Council v Chavasse

Fifty per cent of the claimant’s bill was disallowed because he had failed to make a serious attempt to negotiate with the defendant before the proceedings.

Phoenix Finance Ltd v Federation International de l’Automobile

An unsuccessful claimant had failed to send a letter before action to parties it was joining into existing proceedings. Even though no pre-action protocol applied to the case, an order for indemnity costs was appropriate.

 
ADR and the Court
 
Arbitration/Adjudication

 

CPR Guide

 

Dispute Resolution Funding

 

Mediation

 

Early Neutral Evaluation

 

Privilege

 

 

 

The Duty to Mediate:
 

 

ADR is not mandatory
 

 

The effect of CPR 1.3
 

 

Government Pledge
 

 

Case management powers
 

 

Pre-action protocols:
 

 

Protocols Practice Direction
 

 

Failure to comply
 

 

References to ADR in the protocols
 

 

Professional Negligence Protocol
 

 

Court Guides
 

 

ADR Orders:
 

 

Commercial Court Order
 

 

Effect of failing to comply with an ADR Order
 

 

Costs Sanctions and Burden of Proof
 

 

Without Prejudice Correspondence
 

 

Factors indicating refusal was unreasonable
 

 

Nature of the Dispute
 

 

Merits of the Case
 

 

Use of other settlement methods
 

 

Costs of Mediating
 

 

Effect of Delay
 

 

Whether the mediation had a reasonable prospect of success
 

 

Relevant Court Decisions:
   
Case Law
   
Cases penalising claimants for failing to negotiate
   
Cases penalising parties for failing to mediate
   
Cases where a refusal to mediate was reasonable
   

Appendix 1