Two recent Court of Appeal judgments (“PGF II SA v OMFS Company Ltd [2013] EWCA Civ 1288 “:http://www.bailii.org/ew/cases/EWCA/Civ/2013/1288.html and “Halsey v Milton Keynes General NHS Trust [2004] 1 WLR 3002”:http://www.bailii.org/ew/cases/EWCA/Civ/2004/576.html) have emphasised the need for the parties to a dispute to engage in Alternative Dispute Resolution (ADR). In particular, the Court underlined that a party’s silence or refusal to engage in mediation will be considered unreasonable and will warrant a costs sanction. The interesting development in these judgments is that the refusal to accept a mediation proposal will be considered unreasonable in itself regardless of whether there may have been reasonable grounds for the party to have declined the proposal.

Source: Herbert Smith Freehills LLP, Alexander Oddy and Jan O’Neill, “Failure to engage with ADR proposals: Court of Appeal extends the Halsey principles”:http://www.lexology.com/library/detail.aspx?g=727849e9-d404-4ff5-a4d5-fd5bb0a0b204, Lexology