Costs consequences of refusing to mediate—key and illustrative decisions
Costs consequences of refusing to mediate—key and illustrative decisions

The following Dispute Resolution guidance note provides comprehensive and up to date legal information covering:

  • Costs consequences of refusing to mediate—key and illustrative decisions
  • Failure to engage in mediation or ADR process—costs penalty imposed
  • Failure to engage in mediation or ADR process—no costs penalty

It is clear that an unreasonable refusal to mediate or engage in some other form of alternative dispute resolution (ADR) process may well render a party liable to costs penalties. For guidance on the principles the court will take into account in this respect, with particular reference to the decisions in Halsey v Milton Keynes and PGF II v OMFS, see Practice Note: Costs sanctions for refusal to mediate.

For a summary of decisions since Halsey:

  1. where a costs penalty was imposed—see below

  2. where a costs penalty was not imposed—see below

Failure to engage in mediation or ADR process—costs penalty imposed

Case details and analysis Issues considered
Wales (t/a Selective Investment Services) v CBRE Managed Services Ltd
30 April 2020
High Court, Business and Property Courts, Manchester Circuit Commercial Court, QBD
Wales (t/a Selective Investment Services) v CBRE Managed Services Ltd [2020] EWHC 1050 (Comm)
The claimant successfully established that the first defendant should be deprived of its costs on the basis that it had unreasonably refused to agree to ADR. This was on the basis that the first defendant had:
—repeatedly declined and refused to participate in mediation
—this failure compounded the failure to provide a detailed response to the claimant’s