Alternative dispute resolution

The costs sanction

It was decided by the Court of Appeal in Dunnett v Railtrack plc [2002] 1 WLR 2434 that the successful party in litigation might nevertheless be deprived of its costs if the court is satisfied that the matter could have been resolved by mediation but the successful party refused unreasonably to attempt to settle the dispute by that means. It would seem from the decision of Lewison J in Royal Bank of Canada v Secretary of State for Defence [2003] EWHC 1841 (Ch), that Government bodies are at particular risk in this regard.