Mediation: Breach of Contract Dispute case study
- Breach of Contract mediation, the claimant supplied a photocopier to the defendant on a 60 month leasing arrangement. They also supplied a servicing contract which included the necessary consumables, those being toner and paper, and charged the defendant based upon the number of copies produced.
- Following the 60 month period, the defendant was allowed to retain the equipment by the leasing company. The claimant continued to provide the consumables and invoiced the defendant accordingly.
- The defendant refused to pay the invoices and claimed that the lease had come to an end, and therefore the service contract should also have come to an end. Claiming they had no liability to pay the invoices issued.
- The claimant issued invoices in respect of the above arrangement totalling some £1,994, the defendants claimed that the service contract should have ended when the lease ended, and owed nothing.
- Mediation brought the key decision makers together face to face for the first time guided by their solicitors and the mediator they clearly saw that the contract clause they were both relying upon, came down to interpretation and how a Judge would view this if it went to trial, it was really a 60:40 gamble in favour of the claimant, the defendant reluctantly agreed to pay £1,994.20.
Facts & figures
- The mediation took just 4 hours compared to the 20 months this contractual dispute had already gone on.
- The mediation cost each party £425.00. A good result for both parties when compared to the thousands the they would have spent on legal fees had they continued with Court action.