Mediation

Insolvency mediation – for practitioners

Insolvency practitioners will be all too familiar with the practicalities of litigation. They may have less to fear from the court process than lay-litigants but, equally, they know very well the risks associated with trial and the dangers of a pyrrhic victory.

Insolvency practitioners who are contemplating taking out adverse costs insurance would be well advised to consider mediation before doing so.  Often litigation settles on the basis of a costs-inclusive lump sum offer and an adverse costs insurance premium can severely erode the amount left for costs and creditors.  By mediating before taking out insurance cover, such erosion can be avoided.

Having a mediator who understands the insolvency practitioner’s perspective can maximise the chance of achieving a settlement efficiently and effectively.