Case study

Professional negligence in international banking

Nationality of Parties: American and British

Facts: This dispute arose from the Respondent's retainer by the Claimant, a US banking firm, in connection with an agreement entered into by the parties. The essence of the claim made against international professional advisers was that they had provided negligent advice in their opinion letter and in general advice concerning the transaction.

Amount in Dispute: Between US $8 million and $16 million

Route to Mediation: The parties were oblige to attempt mediation by order of the Court.

Time Between Decision to Mediate and Final Outcome: One month

Mediators' Pre-mediation Work: 15 hours of preparation

Length of Mediation: One day

Cost per party (includes preparation): US $8,000

Conclusion/Post-mediation Work: The parties settled their dispute through the mediation process. The settlement agreement was one which was acceptable to both parties and which, importantly, preserved the existing relationship between the parties by avoiding a lengthy legal battle.

Comments from those involved:

One of the parties stated, `I am quite sure that without your mediation the parties would have found it far more difficult to reach a satisfactory settlement and would probably have got to – and possibly through – the court door ... I am a real convert to the advantages of mediation in complex cases and am spreading the word.'