Chat with us, powered by LiveChat

PJSC Aeroflot - Russian Airlines V (1) Michael Thomas Leeds, Nicholas Stewart Wood and Kevin John Hellard (as Trustees of the Estate of Boris Berezovsky) (2) Subir Desai (as Representative of the Estate of Nikolay Glushkov appointed under CPR r19.8(1)(b) (3) Forus Holding SA-SPF (4) Forus Leasing SA (in liquidation) (5) Forus Finance Limited

Refusal to mediate; Judge found refusal justified; No cause for indemnity costs

Mrs Justice Rose considered whether she should take into account a refusal to mediate in deciding whether to award costs on an indemnity basis.  She found that "where allegations of fraud and serious wrongdoing are made, the proceedings are intrinsically unsuitable for mediation. To penalise the Forus Defendants in costs for the stance they took would in effect be penalising Mr Glushkov and the Forus Defendants for insisting on their right to have their reputations vindicated by the decisions of the court following a trial."  She also held that there was no possibility of the parties making any progress in alternative dispute resolution given the acrimonious relationship between the parties.

Many a mediator would challenge, in particular, this latter view having successfully mediated "unsettleable" disputes!

More Cases

Subject
Consideration as to whether a failure to respond to an offer to mediate is, in itself, unreasonable conduct which should lead to cost sanctions. Costs awarded to the successful party on an indemnity basis despite failure to mediate.
Subject
Costs decision. Consideration of validity of Part 36 offer and reasonableness of failure to mediate at an earlier stage.
Subject
Indemnity costs ordered on basis that losing party failed to engage with offer to mediate.

accreditations & partnerships