In the recent case of DKH Retail Ltd and others v City Football Group Ltd [2024] EWHC 3231 (Ch), the High Court considered an application for compulsory mediation by the Claimant.
This case is a dispute between the Superdry brand and the company that manages the commercial operations of Manchester City Football Club. The dispute arose after the words “super” and “dry” appeared on the Manchester City football kit. This is an issue that our experienced Intellectual Property team would be able to advise on, however, the Order for mediation is relevant to all kinds of disputes.
DKH Retail Ltd made an application at the pre-trial review for an order for compulsory mediation. They referred to the case of Churchill v Merthyr Tydfil County Borough Council; where the Court ordered a stay (which is a pause) on proceedings for mediation to take place.
The application was defended by City Football Group, stating that they agreed the Court has the power to order mediation, but this should only be ordered where there is a realistic prospect of success.
The Court granted the Order for compulsory mediation, stating that just because the parties had not been able to reach a resolution within the proceedings to date, it did not mean there was no possibility of resolution. The Court also noted that mediation would offer a range of options for the parties when considering a resolution; options which would not be available to them at trial as the Court is limited on what it can order.
This recent case highlights the importance of considering mediation throughout proceedings and the increased willingness of the Court to order parties to attempt mediation. For a long time, mediation and other forms of Alternative Dispute Resolution (negotiations, expert determination and much more) was something that was encouraged by the Court. The knowledge that the Court will likely use its discretion to actively order Alternative Dispute Resolution really does assist in cases where an opponent refuses to engage.
If you are in a dispute and are not sure whether mediation would be effective, or if you have an opponent that refused to enter into mediation, please contact our Dispute Resolution team for advice.
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