MediationInSouthend.co.uk

Settling disputes for local people and firms,
where they control the outcome,
saving time and money 
No Settlement No Fee

MediationInSouthend.co.uk

Settling disputes for local people and firms,
where they control the outcome,
saving time and money
No Settlement No Fee
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Case Study Two

 

A British business man meets a friend at an overseas conference. The friend owns a speed boat that he wants to sell. The friends agree a price, 50% to be paid before delivery 50 % on delivery. Before final delivery the seller contacts the buyer to arrange a delivery date and final settlement details, during this discussions it is realised that the seller believed that Vat was payable in addition to the agreed price (as this is normal practice in the type of transaction) but the buyer insists that the price was VAT inclusive. The VAT is a substantial amount .The seller refuses to deliver the boat. The  business man starts an action against his friend to return the 50% deposit he has paid being £50,000. The disputed VAT is £ 15,000. Both parties appoint solicitors and after 6 months each have  incurred £8,000 in legal costs. Trial will take place in 3 months with both parties spending £20,000 in legal costs. The case could go either way based on the evidence.

 

Mediation Solutions There are again many possible ways in which a settlement could be achieved in this case but clearly a mediation meeting held early on in the proceeding would have saved both parties substantial costs

 

 

Case Study Three

 

A surveyor undertakes valuation work for 2 businessmen on a number of properties. The businessmen have not settled the surveyors invoice 6 months after it was first presented. The Surveyor starts an action against the 2 businessman in person. The businessman says that the surveyor contracted with a limited company which is now in liquidation.

The businessmen do not want bad publicity that may arise from this case as they are involved in a number of other transactions and bad publicity could affect these transactions

 

Mediation solution: Gives the parties a chance to discuss the possible outcomes of a case and resolve matter confidentially

 

 

Case Study One

 

A newly married couple appoint a builder to undertake some work for them on their new home He provides them with an estimate which is reasonable and they agree to accept his quotation to undertake the work. They agree to pay 50% of the fee before he starts work. The work takes longer than expected and cost more. The work in completed 3 months late and after completion they find that a part of the work is not only is not up to a reasonable standard but is defective and does not meet current building requirements. The young couple ask the builder to correct the situation which he says he will but after 6 month the work is still defective. They have to live with this defective work and as each day goes by they become more annoyed with the builder. To move matter forward they  appoint a solicitor who writes to the tradesman setting out their case and seeking damages. The correspondence continues for a year. Their legal costs grow. They do not communicate with the tradesman as they do not wish to prejudice their case.  In the meantime the trade man accepts that he made a mistake when he undertook the work and cannot sleep worrying about how is he going to pay for the damages as he does not have any equity in the house he owns and all his income is spent on the mortgage and running his home. His wife is expecting twins. At the moment is so busy with his current work does not have time to think about the case.  

 

Mediation solution. . Once the 2 parties are set on dealing with the matter through the courts, there is little opportunity for the parties to meet and work out together the best outcome for both parties .Mediation provides such an opportunity

 

During the last 6 years I have mediated a variety of different cases. The cases on this page are fictitious  They are intended to give you an idea of how a case can develop, legal costs can grow and how mediation can help resolve disputes.