case studies

The following are cases in which a BL Resolve mediator has either acted as mediator or for one of the parties.

shareholder dispute

A family company was based on two separate sites. Although initially both sides had been run by the family jointly, over the years the two sites had effectively become run by separate branches of the family. The business was profitable but depended upon both sites working well.

There was a breakdown in the relationship between the two branches of the family running the separate sites. The business was suffering. If the relationship between the two branches of the family could not be restored or the dispute ended, it was likely the company would face insolvency. Neither side appeared willing to budge.

During a mediation it became apparent that one side of the family was in fact willing to sell its shares but did not believe that the other was willing to buy them. Once it became known that a sale was possible, negotiations took place which led successfully to the buyout of one half of the family. The business was preserved and the dispute resolved.

a farming trust

As a result of an unsuccessful attempt to develop farm buildings as commercial offices, the farm business had got into financial difficulties. The problems were compounded by the fact that the farm was held on trust for three children (only one of whom wanted to continue farming as an adult). In addition to the widowed mother of the children, there were two other independent trustees. Relationships within the family had become so bad that the eldest son had issued proceedings against his mother and the other trustees (one of whom was his uncle) alleging breach of trust as the development had taken place whilst the children were minors. A trial was imminent and it seemed likely that the farm would have to be sold.

Following a mediation, a compromise was reached which enabled the eldest son to receive payment representing his share of the farm but left the farm still financially viable. The independent trustees were released from further liability. Not only was the expense and stress of the trial avoided, but the relationship between the mother and the eldest son was restored.

a construction dispute

A newly refurbished building suffered from defective air conditioning. The units had been supplied from abroad and then fitted by specialist sub-contractors. They had been specified by specialist consultants.

Everyone was blaming everyone else. The fitters said that it was the fault of the machines and/or the specification, but in any event, they had fitted the machines properly. The consultants said that they had not been fitted properly or that the machines were faulty. The suppliers said that the machines were fine. They were what had been ordered and it was not for them to say if they would do the job properly.

The owner had lost patience. He had spent several hundred thousand pounds replacing the machines and wanted compensation. Everyone else said that he had spent too much on the replacement machines.

All parties came to the mediation. It was clear that if the claim went to trial, the total cost would be over £1 million, much more than the owner’s claim, but the owner was adamant that he would take everyone else to trial if a settlement could not be reached. As a result of the mediation each of the potential defendants agreed an amount that they would pay to settle the dispute without any acceptance of liability by any of them. The total agreed by the defendants was itself accepted by the owner in full settlement of its claim.

professional negligence dispute

A young couple engaged an architect to provide the conversion of an old existing building in the country into their dream home. They did not have a lot of money but the building was in due course completed.

After they moved in water began to appear in the main family room. It became unusable. The cause of the water penetration was unclear. It might have been there before, it could have been poor design or poor construction. The builder was no longer around. The couple sued the architect, who in turn denied that he was liable.

At a mediation, the expert for the architect's insurers, instead of focusing on the question of liability, focused on how much it would cost to actually remedy the problem. Although the final sum agreed was less than what the owners wanted, it was sufficient to sort out the water penetration and make the building habitable. From the couple’s point of view, it avoided the cost, stress and uncertainly of a trial, and similarly from the insurer’s point of view, it achieved finality in a dispute which, had the architect lost, could have resulted in an award of damages considerably higher than the amount needed to sort out the problem.

pre nuptial agreement

A couple who were both marrying for the second time wanted to preserve the assets they brought into the marriage, and only share in the matrimonial aspect, ie the increase in value of those assets during the marriage.

There was a disparity in their respective wealth and one party to the marriage was significantly wealthy.

During the collaborative process, a starting point for the valuation of the assets going forward was agreed and a formula for dividing the assets upon any marriage breakdown was reached. Agreement was also reached on whether that formula would differ depending on the length of the marriage. An agreement was reached, leaving the couple to enjoy their wedding day.

For further information please contact Jenny Campbell, BL Resolve co-ordinator on 023 8085 7353 or email resolve@bllaw.co.uk