Alternative Dispute Resolution (ADR) is an ongoing duty for both parties within any dispute. The Civil Procedure Rules state that litigation should always be a last resort and parties should always try and reach a settlement without the need to commence proceedings and if proceedings are commenced, then to avoid this progressing to a final hearing.  

This also avoids incurring unnecessary costs for both parties and wasting court’s precious time.  

There are many types of ADR including the following: –  

• Mediation (utilising an unbiased third party to help come to a resolution); 
• Arbitration (this third party makes the final decision of this dispute); 
• Early Neutral Evaluation (the third party gives a knowledgeable opinion on the matter at hand) and  
• Ongoing negotiations and settlement offers between parties.  

In the recent case of DSN v Blackpool Football Club Ltd [2020] EWCH 670, the High Court held that there may be costs sanctions where the Defendant has “wholly and unreasonably” failed to engage in ADR.  

Here, Blackpool Football Club failed to engage in any settlement discussions and declined three part 36 offers (a settlement offer to settle the claim without having to attend Court) by DSN. Blackpool Football Club believed they had a strong defence but the Court held this was an inadequate reason for the failure in engagement of ADR.  

Blackpool Football Club were therefore slapped with a £200,000 costs order against them.  

Despite whether or not you believe you have a solid enough case to succeed at Court, you will be encouraged to engage in any form of ADR as this shows your commitment to resolving this matter outside of Court.  

If you have a potential dispute and require advice, please do not hesitate to contact us on as@bailoransolicitors.com or contact the offices on 0113 266 0735.