By Anthony Lo Surdo SC -
Snapshot
- There are many benefits to court-ordered mediation but the parties and the mediator also have a number of obligations which are often overlooked.
- The recent decision of In the Matter of Staway Pty Limited (In Liquidation) (Receivers Appointed)[2017] NSWSC 485, is a reminder that a failure to comply with those obligations can expose a party and, in exceptional circumstances, their lawyer, to costs and other consequences.
It is not uncommon for proceedings to be ordered to mediation with or without the consent of the parties. While there are many benefits of a court- ordered mediation including the parties being able to avail themselves of the privilege with respect to defamation that exists with proceedings in court, the obligations imposed on the parties by a court-ordered mediation are often overlooked.
The recent decision of McDougall J in In the Matter of Staway Pty Limited (In Liquidation) (Receivers Appointed) [2017] NSWSC 485 (‘Staway’) is a salient reminder that a failure to comply with any court order relating to mediation (and the various obligations imposed on the parties by legislation and the rules and practice of the Court) may expose a party to costs and other consequences.
