Silence is not golden — the real cost of ignoring a mediation invitation

By Simon Pestell

In the recent case of PGF II SA v OMFS (2013), the Court of Appeal upheld a decision of the High Court to deprive a successful party of its costs on the grounds that it had not responded to an invitation to mediate.

The case related to a claim for damages arising from dilapidations. The claimant made two Part 36 offers to accept firstly £1.125m and then £1.25m and followed that up with a detailed invitation to participate in mediation. The defendant did not respond to the invitation and instead made a Part 36 offer to settle of £700,000. The defendant’s offer was eventually accepted but very late (on the eve of trial) and, ordinarily, the claimant would be obliged to pay the defendant’s cost incurred from a date shortly after the offer was made and up to the date on which it was accepted…

Click on the link below to read the rest of the Shoosmiths briefing.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Shoosmiths

View more briefings from Shoosmiths

Analysis from The Lawyer

  • Hester: declined bonus worth almost £1m

    Pay checks

    Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future

  • high street 150

    Focus: Alternative business structures - Law and new order

    There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…

Overview

2 Colmore Square
38 Colmore Circus Queensway
Birmingham
B4 6BJ
UK
http://www.shoosmiths.co.uk

Turnover (£m): 92.98
No. of lawyers: 393