Starting October 1st, courts in England and Wales will be able to impose legal costs on parties involved in Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) and Inheritance (Provision for Family and Dependants) Act 1975 disputes who decline to participate in non-court dispute resolution methods, such as mediation.
This authority, previously limited to financial remedy proceedings, is now being extended to other areas of law. While the court won’t be able to force parties to attend mediation, it can leverage costs orders to encourage cooperation.
This shift is prompted by a recent Court of Appeal ruling that clarified the court’s power to order parties to engage in ADR (Alternative Dispute Resolution). This ruling overturned a precedent that considered mandatory ADR a violation of human rights.
While parties in TOLATA and 1975 Act disputes can’t be mandated to attend mediation, their refusal to participate may have financial consequences.
It’s worth noting the specific language used in the Family Procedure Rules: “engage in” rather than “attend.” This distinction is crucial, implying a broader obligation beyond mere attendance.
Contact us today to learn more about Costs Orders for Refusing to Mediation.
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