A Court of Appeal judgment ruling it lawful for judges to stay proceedings for dispute resolutions has been described as a ‘welcome development’ - but with reservations. 

In lead judgment in Churchill v Merthyr Tydfil County Borough Council, Sir Geoffrey Vos, master of the rolls, said: ‘The court can lawfully stay proceedings for, or order, the parties to engage in a non-court-based dispute resolution process provided that the order made does not impair the very essence of the claimant’s right to proceed to a judicial hearing, and is proportionate to achieving the legitimate aim of settling the dispute fairly, quickly and at reasonable cost.’

Welcoming what he described as an ‘important judgment’, Law Society president Nick Emmerson said: ‘The Law Society strongly believes that non-court based dispute resolution will usually be in the best interests of the parties, but has always had real reservations about a blanket rule making any form of such process mandatory.

‘This judgment reflects those reservations in that it recognises that in some circumstances it may be contrary to a party’s right of access to the courts to compel them to engage in a non-court based dispute resolution process. We welcome the court’s clear guidance as to when and how judges should intervene to encourage non-court based resolution of disputes.’

Bar chair Nick Vineall KC, who represented the bar in the appeal, said: ‘ADR in general, and mediation in particular, are powerful tools for resolving disputes and can save parties time, cost and stress. However, whether or not it is appropriate to compel unwilling parties to use ADR techniques will be highly fact specific.’

Elaina Bailes, partner at litigation specialist Stewarts said the firm, which acted pro bono for interveners the Civil Mediation Council, the Chartered Institute of Arbitrators and the Centre of Effective Dispute Resolution, said she was proud to have worked on the ‘pivotal case’. She added: ‘The Court of Appeal’s ruling is a welcome development for dispute resolution in England and Wales, recognising that alternative dispute resolution is an integral part of the justice system.

‘The court’s decision should not only help parties resolve their disputes faster and with less expense, but also save time for the courts and justice system.’

Chair of the CMC Rebecca Clark said: ‘We are delighted by this judgment. Mediation is now where it should be - firmly embedded within the civil justice system.’

Catherine Dixon, chief executive of the Chartered Institute of Arbitrators, said: ‘Private dispute resolution is an integral part of an effective justice system. Providing parties with access to mediation and other dispute resolution processes supported by qualified dispute resolution professionals, creates more opportunities for parties to reach a resolution appropriate for them.’

CEDR chief executive James South said: ‘We will now enter a new era of positive change.’