Failing to mediate can result in the awarding of indemnity costs. This well established principle was applied in the recent high profile case of Gill v RSPCA. You may well have read about this case in the press. Briefly Dr Gill was expecting to inherit a farm which had belonged to her parents. When her mother died the will purported to leave the estate instead to the RSPCA (Third Defendant in the proceedings). Dr Gill successfully challenged the will in the High Court.
On 7th January 2010 James Allen QC, a Deputy High Court Judge give his ruling on costs (follow the link above to read the transcript). This was complicated litigation but one element of the Claimant’s case was based on proprietary estoppel – she had relied upon the conduct and statements of her parents as constituting assurances which she relied upon to her detriment. The court found in her favour in this part of the claim and then had to consider the costs. It is useful to set out a little of the history of the litigation:-
- 13/6/08 – Defendant offers Claimant £650,000 plus costs.
- 20/6/08 – Claimant asks Defendant to reconsider ADR.
- 20/6/08 – Claimant rejects Defendant’s offer but counter offers the Defendant part of the farm worth £850,000 and all the money in the estate bank accounts. Defendant rejects the offer.
- 24/7/08 – trial adjourned part heard.
- 19/9/08 – Claimant asked Defendant to reconsider mediation.
- 29/9/08 – Defendant asked Claimant if they she had any further offers to make.
- 28/10/08 – Claimant offered to accept 219.89 acres – the remainder worth £1,060,000 to Defendant.
- 3/11/08 – Defendant rejects offer.
Judge Allen found the despite Dr Gill’s repeated attempts to resolve the matter by mediation or some other form of ADR the RSPCA remained resolute in it’s opposition and this Read More »
