Contracts keep litigation at bay with mediation clauses

Dodsworth, C.

Contracts keep litigation at bay with mediation clauses - 2003 - Construction News (6799) 16 January 2003, 12(1) .

Looks at "Cable and Wireless plc v IBM (UK)" [2002] where the client sought to go staight to court circumventing a clause in its contract, which set out the use of a tiered dispute resolution method. Tiered clauses, which include a requirement to try to resolve disputes by alternative dispute resolution, are becoming more familiar in the construction industry, particularly in involved cases such as PFI or partnering contracts. The parties can resolve their differences more quickly, and can aim for a negotiated settlement, and only resort to litigation when other solutions have failed. In this case, even though the clause did not make it clear that mediation was a precondition to litigation, the judge treated it as if it were. View judgment at www.bailii.org.


CABLE AND WIRELESS PLC v IBM (UK) LTD
ALTERNATIVE DISPUTE RESOLUTION
MEDIATION
TIERED CLAUSES
CONSTRUCTION DISPUTES