Court has power to order parties to engage in ADR

Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416

In Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416; [2024] BLR 12, the Court of Appeal held that the court does have a power to stay court proceedings and order parties to engage in a non-court-based dispute resolution process. While the Court of Appeal did not seek to define the precise circumstances in which a court may make such an order, it affirmed that it should only do so where the order does not impair the "very essence" of a claimant's right to proceed to a judicial hearing and the order is proportionate to achieving the legitimate aim of settling the dispute fairly, quickly and at reasonable cost. The conclusion that the court does have such a power is significant and it is likely to cause parties to think more carefully when deciding whether or not to participate in alternative dispute resolution (ADR) or to insist on pursuing court proceedings.