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Contracts keep litigation at bay with mediation clauses

By: Series: Construction News ; (6799) 16 January 2003, 12(1)Publication details: 2003Subject(s): Online resources: Summary: 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.
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Journal article London Journal article ABS66341 (Browse shelf(Opens below)) 1 Available 121176-1001

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.