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Shirayama Shokusan Company Ltd v Danovo Ltd, High Court, Chancery Division, 5 December 2003

17 December 2003
The issues

Alternative Dispute Resolutions – ADR – Mediation – whether Court could Order Mediation.

The facts

This claim involved a property dispute arising from a 20-year sub-under lease. The Applicant had issued an Application for Summary Judgment. The Respondent Company issued an Application for an Order that the matter be mediated.

The decision

1. The Court had jurisdiction to direct the dispute be dealt with by means of ADR, by dint of the Court’s obligation under CPR Part 1 actively to manage cases and also to encourage the parties to use ADR.

2. It was a significant matter in this regard that the parties occupied the same building and were in a long-term commercial relationship.

3. The Application for Summary Judgment would not deal with all the issues dividing the parties. Mediation would be able to deal with wider issues where litigation would not.

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