Case study

Israel - UK clothing manufacturing

Nationality of parties: British and Israeli

Facts: This was a contract dispute between the supplier of garments and a warehousing and distribution company. The parties had entered into an agreement, which foundered in mutual dissatisfaction. This led to a dispute over the warehouse service provided by the distribution company (Party A), who subsequently terminated the agreement and claimed £1.2 million in unpaid invoices and costs of variations to the agreement. Party B counterclaimed for alleged consequential costs of breakdowns in Party A’s service.

Amount in Dispute: US $3.7 million

Route to Mediation: A date for arbitration had been set and there was no stay, but the parties agreed between themselves beforehand to refer the matter to mediation.

Time Between Decision to Mediate and Final Outcome: One month

Mediator’s Pre-mediation Work: Eight hours of preparation

Length of Mediation: One day

Cost Per Party (includes preparation work): US $7,100

Conclusion/Post if Mediation Work: The parties successfully settled the matter through the mediation process.

Comments from those involved: Party A’s lawyer stated of the mediator ‘she got to grips with the issues very well and was thoroughly prepared’. He was ‘happy that it settled and the process worked’. The lawyer for Party B was very impressed with the mediator and said that his clients were “very happy, incredibly impressed” with the mediator. He said that ‘mediation is a great tool and we were ever so pleased overall’.