MEDIATION: WHEN TO CONSIDER IT, AND THE DANGERS OF DECLINING

The High Court recently gave notice that it will use costs orders to punish litigants who engage in expensive litigation without first giving mediation a try in appropriate cases. Although normally a successful litigant is awarded his/her legal costs against the loser, the Court in this matter (a divorce dispute over division of assets and maintenance) required both parties to pay their own costs.

Of course mediation will not be appropriate in every case. But if your attorney advises you to consider it, not doing so could be an extremely expensive mistake - in the case in question for example, costs were estimated at between R500.000 and R750.000.

Note that although this case was a family dispute, there are strong indications in the judgment that the principle could well be applied - although perhaps to a lesser extent - in appropriate commercial matters as well.

Recent Articles for January 2010; Source: www.dotnews.co.za
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