PGF II SA v OMFS Company 1 Ltd

PGF II SA v OMFS Company 1 Ltd

Silence in response to a serious invitation to participate in ADR is, as a general rule, unreasonable conduct of litigation and justifies a costs sanction; the defendant's silence amounted to an unreasonable refusal to mediate, warranting deprivation of costs for the relevant period.

Parties
Claimant/respondent: PGF II SA; Defendant/appellant: OMFS Company 1 Limited
Jurisdiction
England and Wales
Judgment Date
23 October 2013
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal and cross-appeal dismissed.
Legal Topics
ADR Refusal, Costs Sanctions, Part 36 Offers, Mediation, Litigation Conduct
Civil Procedure Alternative Dispute Resolution Costs ADR Refusal Costs Sanctions Part 36 Offers Mediation Litigation Conduct

Case Brief

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Parties

PGF II SA

Claimant/respondent

OMFS Company 1 Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether silence in response to an invitation to participate in ADR constitutes unreasonable refusal
  2. 2 Appropriate costs sanction for unreasonable refusal to engage in ADR

Ratio Decidendi

Silence in response to a serious invitation to participate in ADR is, as a general rule, unreasonable conduct of litigation and justifies a costs sanction; the defendant's silence amounted to an unreasonable refusal to mediate, warranting deprivation of costs for the relevant period.

Court Disposition

Appeal and cross-appeal dismissed.

Orders

  • Defendant deprived of costs entitlement for the relevant period.
  • No order for defendant to pay claimant's costs for the relevant period.