Jurisdiction(s):
United Kingdom

Churchill v Merthyr Tydfil: Court of Appeal confirms power to compel ADR and stay proceedings, subject to Article 6 proportionality (England and Wales)

Published on: 22 February 2024

Published by a LexisNexis Arbitration expert

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Article summary

Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416 What are the practical implications of the case?

This ruling could mark a watershed for ADR, likely prompting a sharp rise in mediations and other ADR mechanisms across disputes. The Court stressed the need to temper any compulsion with parties’ rights under Article 6 of the European Convention on Human Rights, and underscored judicial discretion throughout the judgment, signalling balance rather than automatic coercion. Its application will turn on the facts of each dispute. How that discretion is exercised will be case by case and fact-sensitive. Although the soundness of the Council’s complaints scheme was not ultimately ruled upon, parties should note that where a clear route to ADR is overlooked, they will be expected to explain the omission to the Court. Parties who are both represented and comparably resourced, in particular, will struggle to oppose a stay for mediation, the merits of which were extolled by the Court of Appeal. In short, the Court has power to require engagement with ADR and will stay proceedings where that is necessary and appropriate, including to enable ADR to take place...

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