The Price you can pay for failing to enter into negotiations

The recent case of PGF II SA v OMFS Company 1 Limited [2013] EWCA Civ 1288 highlights the importance of entering into constructive dialogue involving disputing parties.

The above case illustrates, that if a party fails to respond to an invitation to enter into alternative dispute resolution, or mediation, then the courts will take into consideration, the conduct of such party, and penalise them with the appropriate cost orders.

This should be considered a very important case when dealing with litigation.  As a matter of course, inviting those likely to have, or have a potential cost order made in favour or against, should enter in constructive dialogue.  Legal costs in civil litigation can escalate very quickly, especially in bitter and acrimonious matters.

HH Legal since opening its doors for business have always adopted a policy of inviting parties to negotiate as an alternative to litigation. As we actively engage in contesting and defending Wills, we are very aware of the importance in ensuring that offers to mediate, and seeks alternative dispute resolutions are very important.

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