No one wants to find themselves in a legal dispute, but sometimes it simply cannot be avoided. A dispute can occur when a person, company or organisation disagrees with another person or body, usually over money, legal problems, complaints or relationships. Here’s what to do if you find yourself in this unwanted position.
Avoid court wherever possible
Wherever possible, try to avoid going to court, because this is an expensive and prolonged process, and many disputes can be more easily solved through early intervention and communication.
As an example, if you find yourself in a dispute with a business, you should follow its formal complaints procedure before you consider making a court claim. A judge is likely to hold it against you if you immediately file a court claim without seeking to reach an agreement first, especially where costs are being allocated.
This is even more crucial if you are a business using a litigation funding service such as www.novo-modo.co.uk/litigation-funding to support the case. It’s important to be sure that you have a strong case before seeking litigation funding, and advice on this will be provided beforehand.
Communicate and Negotiate
Better communication can very often solve a dispute, especially where both sides are open to negotiation and compromise. This will of course depend on the nature of the dispute, but you can often avoid the stress and expense of court in this way. Negotiation can be an excellent first step towards a resolution and you can use a solicitor or other representative for support if you prefer.
Use an Ombudsman or Regulator
Depending on the nature of the dispute, there may also be an ombudsman or regulator that can help you with your dispute. These bodies offer advice and sometimes mediation and arbitration, depending on the issue and the nature of the dispute. It is always worth seeing what support is available.
These steps will all help you to resolve disputes with a better outcome all around.
Related: Who uses litigation funding?
Common misunderstandings about mediation
Mediation is often dismissed for the wrong reasons. One is cost: people assume any formal process must be expensive, but because mediation usually takes far less time than litigation, it tends to cost much less, and if it does not settle the matter, the court route is still open. Another is that it only suits small disagreements. In fact, businesses regularly use it for large commercial disputes; we simply hear less about it, because outcomes are usually kept confidential.
It is also easy to overestimate a strong case. Litigation carries no guarantees: a witness may not come across well, new evidence can emerge, and even a win can cost more in time, money and stress than it recovers. Finally, mediation is not a hearing that ends in a verdict. The mediator does not decide who is right. Their role is to help both sides explore options and reach an agreement they choose for themselves, which is often easier to live with afterwards.
Responding when court papers arrive
Sometimes a dispute goes further than negotiation, and someone threatens court action. Getting legal advice early helps you respond well. If the claim relates to goods or services you provided, check whether your insurance covers it. Negotiation or mediation may still settle things, and the courts expect both sides to try to settle before a case is heard.
If court papers do arrive, never ignore them. In England and Wales you usually have 14 days to respond to a county court claim, and any counterclaim can be raised as part of your defence. If you do nothing, the other side may get a judgment against you by default, which can be hard to reverse.
In most cases, someone suing you needs a court judgment before they can try to recover money, and you will normally have the chance to defend the claim first. If a judgment is made and not paid, the court can use enforcement such as bailiffs or deductions from earnings, and a County Court Judgment can affect your credit rating.