Future failure to comply with ADR mandates could lead to sanctions
Former Conservative MP Charlie Elphicke and Times Newspapers have been ordered to engage in alternative dispute resolution (ADR) over a legal costs dispute before court proceedings can continue.
The decision, hailed as a landmark by the Association of Costs Lawyers (ACL), could set a precedent for the insurance and personal injury sectors, where ADR has increasingly become a valuable tool for cost management and dispute resolution.
Delivered by King’s Bench Master Victoria McCloud in her final ruling before retirement, the decision is emblematic of the growing judicial push towards ADR as a means to relieve pressure on the UK court system.
Importantly, professionals in insurance and personal injury law may see this as a harbinger of similar requirements for cost disputes related to negligence and claims settlements.
Failure to comply with ADR mandates could lead to sanctions, a message that resonates strongly with claims professionals who face lengthy and expensive disputes.
Details of Charles Elphicke v Times Media Ltd
Elphicke’s libel claim against Times Media Ltd concerned articles alleging he was under investigation for sexual assault, a case that was eventually discontinued. Despite the withdrawal, he sought to avoid the usual costs awarded to the opposing party when a case is dropped. Master McCloud ruled that breaches of court rules justified a 20% reduction in Times Media’s costs, but the exact amount remains to be determined through a deta