civil mediation case study
A home owner instructed a builder to carry out extensive
external and internal alterations to his home. Some plans were
drawn up and a price agreed.
The builder started work and substantial
changes to the work were discussed at various stages and some
of the changes carried
out.
There was disagreement about what changes had been agreed,
how they were to be priced and when they were to be paid for.
Because the builder was being asked for repeated changes and not being paid what
he thought was due, building stopped with the home left as a building site.
Court
proceedings ensued, the builder claiming £8000 for unpaid work and the
home owner claiming damages for delay and breach of contract.
The proceedings continued for 7 years and legal
fees ran up to about £17,000 each side. Estimates for
future costs were very substantial.
The parties decided to mediate and, after 7 years of dispute,
settled with the mediator’s help in less than 7 hours at a cost of less than £1000
for both parties.
It pays to mediate!
