Author: Jigna Varsani

5 Essential Dispute Resolution Tips: What to Do When a Dispute Arises

Disputes can arise in both personal and business contexts, often at the most inconvenient times. Whether the issue concerns a breach of contract, unpaid invoices, a professional negligence claim or a property dispute, the way in which you respond in the early stages can have a significant impact on the outcome.

While every dispute is different, taking a considered and strategic approach from the outset can help protect your position, minimise costs and increase the prospects of achieving a favourable resolution.

1. Preserve All Relevant Documents and Evidence

When a dispute arises, it is essential to preserve all relevant documents and communications.

This may include:

• Contracts and agreements
• Emails and correspondence
• Invoices and payment records
• Text messages and instant messages
• Photographs and videos
• Meeting notes and file records

These documents may prove crucial in establishing what happened and supporting your position should the matter proceed to formal dispute resolution or litigation.

As a general rule, parties should avoid deleting, amending or destroying potentially relevant information once a dispute is anticipated.

2. Focus on the Outcome You Want to Achieve

It can be easy to become focused on proving that you are right. However, successful dispute resolution often requires parties to step back and consider their commercial objectives.

Ask yourself:

• What is the best possible outcome?
• What would represent an acceptable compromise?
• Is maintaining a business relationship important?
• Is recovering a debt or securing performance of an obligation the primary objective?

Understanding your desired outcome from the outset can help guide negotiations and ensure decisions are made strategically rather than emotionally.

3. Remain Open to Alternative Dispute Resolution

Many disputes can be resolved without the need for lengthy and costly court proceedings. Alternative Dispute Resolution (“ADR”), such as mediation, negotiation or arbitration, can often provide a quicker, more cost-effective and flexible route to settlement. For more information, see our article: Why Alternative Dispute Resolution Is More Important Than Ever [add in link] and our Guide to Mediation.

4. Keep Costs and Commerciality Under Review

A strong legal case does not automatically mean litigation is the best option. Before taking any significant step, it is important to consider the likely costs, potential recovery and practical realities of enforcement. The most commercially sensible solution may not always be the most aggressive one.

5. Act Promptly and Seek Advice Early

One of the most common mistakes parties make is waiting too long before addressing a dispute.

Delaying action can lead to important evidence being lost, legal deadlines being missed and positions becoming increasingly entrenched. Early legal advice can help you understand the strengths and weaknesses of your case, identify potential risks and determine the most effective strategy moving forward.

Addressing a dispute at an early stage can often prevent matters from escalating and may increase the likelihood of a swift resolution.

Conclusion

No two disputes are the same, but taking the right steps from the outset can significantly improve the prospects of achieving a timely and cost-effective resolution while avoiding unnecessary escalation.

Need Advice?

At Wellers, we advise individuals, organisations and businesses on a variety of disputes. If you would like advice on this topic or if you have a litigation dispute please contact Jigna Varsani at Jigna.varsani@wellerslawgroup.com or on 020 7481 2422,or another member of the Dispute Resolution team for a no-obligation initial discussion.

Please note: This article was correct at the time of writing. The law may have since changed, which could affect the information and advice provided.

Why Alternative Dispute Resolution Is More Important Than Ever

For many years, litigation was viewed as the primary route to resolving disputes. However, the courts have increasingly encouraged parties to consider Alternative Dispute Resolution (“ADR”). More recently, ADR has become a central feature of the civil justice system rather than merely an optional alternative.

What is ADR?

ADR refers to a range of processes used to resolve disputes without the need for a court trial. Common forms of ADR include mediation, negotiation, arbitration and early neutral evaluation. Although the various forms of ADR differ in approach, they all seek to resolve disputes more quickly, efficiently and economically than traditional court proceedings.

What Are the Benefits of ADR?

• Cost-effective – ADR is generally less expensive than court proceedings, reducing legal fees, expert costs and court fees.
• Faster resolution – Court timetables can be lengthy, particularly in complex disputes ADR processes can often be arranged within weeks allowing parties to resolve matters far sooner.
• Confidential – Unlike court proceedings, ADR processes such as mediation are conducted privately.
• Greater control over the outcome – Parties can negotiate practical and creative solutions which a court may not have the power to order.
• Preserves relationships – ADR is less adversarial than litigation and can help maintain commercial, professional or personal relationships

The Courts’ Changing Approach to ADR

Historically, there was uncertainty regarding the extent to which courts could compel parties to engage in ADR.

For many years, the case of Halsey v Milton Keynes General NHS Trust [2004] EWCA Civ 576 was widely understood as authority that parties could not be forced to mediate as this was thought to interfere with the right to a fair trial.

That position changed significantly following the Court of Appeal’s decision in Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 141. In that case, the Court of Appeal confirmed that courts do have the power to order parties to engage in a non-court-based dispute resolution process, provided that this does not prevent them from obtaining a judicial determination if settlement cannot be reached.  

The Civil Procedural Rules also make clear that a party’s conduct regarding ADR can be relevant when costs are considered. Unreasonably refusing to engage in ADR may result in adverse cost consequences, even for a party that is otherwise successful in the litigation.

What Does This Mean for Litigants?

The courts’ approach makes clear that parties should give serious consideration to ADR at an early stage of a dispute. Refusing to participate in ADR without good reason may be viewed unfavourably and could have cost implications.

This does not mean that every dispute should settle. Cases involving significant points of law, for example, may require judicial determination. For more information on the litigation process, see our Guide to the Litigation Process. 

Where ADR is appropriate, parties should be prepared to explain any decision not to participate.

Conclusion

ADR has become an integral part of the modern civil justice system rather than simply being an alternative to litigation.

The courts increasingly recognise its potential to deliver fair, proportionate and cost-effective outcomes. Litigants should approach ADR with an open mind and with a willingness to explore settlement opportunities wherever appropriate.

A well-managed ADR process can save substantial time, cost and stress, while giving parties greater control over the outcome of their dispute.

Need Advice?

At Wellers, we advise individuals, organisations and businesses on all aspects of ADR. If you think that your dispute could benefit from ADR, please contact Jigna Varsani at Jigna.varsani@wellerslawgroup.com or on 020 7481 2422,or another member of the Dispute Resolution team for a no-obligation initial discussion.

Please note: This article was correct at the time of writing. The law may have since changed, which could affect the information and advice provided.