Overview

In Rolf v De Guerin, the Court of Appeal considered an appeal about the costs of a small building dispute, in circumstances where the claimant succeeded on only a fraction of her claim and the defendant refused several offers to mediate until the eve of trial. The Court of Appeal exercised its discretion to make no order as to costs. It held that refusing to participate in settlement negotiations or mediation was, on the facts, unreasonable and ought to bear materially on the exercise of the court's discretion.

This case provides a salutary warning to parties, even where they are partially successful, of the potential adverse costs consequences of refusing to mediate and is yet another example of the Court of Appeal endorsing the use of mediation.

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