Successful Alternative Debt Resolution, Following a Contract Dispute, Using Mediation

This case study, in which our debt recovery solicitors successfully used mediation as an alternative debt resolution technique, demonstrates how effective such methods can be in settling debt related disputes without the need to go to Court. The settlement included damages and costs paid to our client.

The Details of This Case

We recently represented a Commercial Client in connection with a Contract dispute over the supply of goods from China. The supplier was in breach of Contract in failing to supply the goods on time, with time being of the essence of the Contract.

The outcome for our Client of this late supply of goods was the possibility for them to be placed in breach of Contract with their own customers in the UK and facing potential losses.

Swift action was needed. County Court proceedings were issued to recover damages from the supplier. The damages included: a refund of the 50% deposit paid in advance to the supplier as well as for an Order for delivery up of our Client’s tooling held in China.

The Defendant disputed the matter, failed to co-operate and fully contested the proceedings. As a result, the case was heading towards a fully contested one-day Trial in January 2019.

We Suggested Mediation as an Alternative Dispute Resolution Method

Often, litigation is seen as the next logical step once a matter is disputed. However, our debt recovery solicitors know that this can take time and money. In this case time was of the essence, and we drew upon our experience of alternative dispute resolutions.

At our team’s suggestion the parties mediated (a technique which they had previously discounted). As a result, the parties were able to resolve the dispute amicably with the assistance of ourselves and the Mediator, without the need to go to Court.

The settlement included not only damages and costs being paid to our Client but also the Defendant delivering the tooling back to our Client.

Contact us For Help and Assistance with Disputed Claims 

When a claim is disputed it is not necessarily the case that the outcome is a Court appearance. Indeed, the Courts positively encourage the use of alternative dispute resolution techniques to settle things without the need for a Court appearance.

Our solicitors are experienced in all forms of ADR – arbitration and adjudication as well as mediation – and help to deliver the results our clients want. Click here to see some more case studies and testimonials.

If your business is involved in a disputed debt-related claim, please call us on 01922 700730 or contact us for an initial discussion of your options.