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A new Order 56A of the Rules of the Superior Courts (Mediation and Conciliation) 2010,will be in force by late November 2010 and will be similar to the procedure in the Commercial Court whereby a High Court judge may now adjourn legal proceedings to allow the parties engage in an ADR process. This means mediation, conciliation or any other dispute resolution process approved by the High Court. These rules will contain a costs sanction for those who fail or refuse without good reason to participate in an ADR process.
What does this mean for anybody involved in proceedings in the High Court?
ADR may now become “mandatory” over time in the High Court. The Chief Justice, Mr. Justice John Murray recently told a legal conference that the Government should do more to promote a professional mediation service and alter the perception of the courts as the first and only resort for dispute resolution. It’s inevitable that the parties to boardroom and shareholder disputes, property or commercial contract, divorce and family law, IP and trademark, cases, and even medical negligence cases may be “required” to engage in ADR. However, the judges will prefer if the parties embrace ADR at a much earlier stage and have first explored their options rather than be required to engage in a process which should be entered into voluntarily.
The new rules will provide for a procedure whereby the court can invite the parties to attend an information session on the use of mediation. Accordingly anybody contemplating High Court litigation today must be aware of the nuts and bolts of mediation, arbitration, conciliation or adjudication. Otherwise, it’s very likely that an unwilling party will be penalized with a costs sanction. This will be particularly relevant to state bodies with the current focus on the need to reduce legal expenses.
Brian Walker
October 2010
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