Mediation

Mediation is one of the most commonly recognised and used forms of alternative dispute resolution (ADR). The Practice Notes in this subtopic discuss the key features of mediation and how it contrasts with other forms of ADR, as well as practical guidance on how to prepare for a mediation (including choosing the mediator, preparing the necessary documents and yourself and your client), what to expect on the day, as well as settlement at the mediation and issues of confidentiality, mediator liability and codes of conduct.

For further guidance on:

  1. all forms of ADR, see: ADR and dispute resolution clauses—overview

  2. settling disputes generally, see: Settlement and settling disputes—overview

  3. specific issues relevant in cross-border cases, see: Cross-border ADR—overview

What is mediation and how does it work?

Mediation is a confidential process which involves an independent third party (the mediator) who seeks to assist the parties to come to an agreement to resolve their dispute.

In summary:

  1. it is usually confined to a set period of time (a couple of hours to one/two days, depending on the complexity involved in the dispute)

  2. it usually starts with each party

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Court of Appeal confirms narrow scope for post-limitation substitution in wrong defendant cases (Adcamp LLP v Office Properties)

Dispute Resolution analysis: The Court of Appeal has ruled that CPR 19.6(3)(b) does not permit substitution of defendants after expiry of the relevant limitation period where such substitution would change the essential facts necessary to establish liability against the substituted defendant. The claimants (respondents in the appeal) had issued proceedings against firms which had acquired the alleged wrongdoers, believing that any liabilities had been transferred. When it emerged (or was at least disputed) that liabilities had not been transferred, they sought to add or substitute the predecessor firm after limitation had expired. The Court of Appeal concluded that CPR 19.6(3)(b) was not engaged since the substitution would change the claim in substance, as an essential element of the case against the original defendant (the pleaded basis for the acquiring firm’s liability) would be replaced by the primary liability claim against the substituted defendant. It was, in effect, a different claim against a different party. The Court of Appeal was clear that any perceived harshness this might cause to claimants could not be mitigated by adopting a broad reading of CPR 19.6(3)(b). Rather, it considered the problem (if any) was caused by earlier binding Court of Appeal authority which had confined the ‘mistake’ gateway in CPR 19.6(3)(a) to errors of name (misnomer) and excluded cases of mistaken legal responsibility/liability (identity). Any solution, if required, would therefore be a matter for the Supreme Court.

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