The issue We mediated a contractual dispute where the commercial landlord leased industrial premises to the tenant under a 5 year lease with no break clause. After a year, the tenant ceased payment of the rent citing disrepair and damage to the premises causing losses and machinery damage. The matter escalated to the point of potential court proceedings.
Mediation outcome When we were hired to undertake mediation, the issues between the landlord and tenant were resolved. This resulted in a settlement being reached for the damage to the machinery, which was set against the rent owed. Consequently, this meant that they avoided potential forfeiture of the lease and costly court hearings, which would have been in excess of £15,000 each.
The issue We were instructed to mediate in a construction dispute over defective works carried out to a car park. The Claimants and education body brought a claim against the Defendant contractors over the poor construction of the school car park alleging that the specifications and drawings did not reflect the refurbishment that the Claimants ended up with. The Claimants sought rectification of the work and damages for £98,000.
The Solution The Defendants argued that they had followed the brief and there were some issues which they had raised with the Claimant which they received incoherent instructions and delays which had caused some of the problems. During mediation it was agreed that the outstanding defects would be rectified by the Defendant. The Claimant’s accepted that some of their instructions could have been communicated in a better way. Damages were agreed at £62,000
Our Approach Mediation took 2 days compared to the 22 months the dispute had been going on for. Each party saved on thousands of pounds on litigation costs and fees if the matter had continued in court.
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