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Your dispute has settled – what next? Part 2

By Sarah Naylor

Published In: Commercial Litigation

In part 1 of this blog we looked at how to deal with a post-dispute situation where the other party has upheld their side of any settlement, agreement or court judgment. In this part 2 we are going to focus on the options available if the other party doesn’t uphold their obligations.

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Resolving a dispute through negotiation or legal means is a significant accomplishment, but the process doesn't end there. The effectiveness of a settlement or court judgment depends on the parties involved adhering to the terms. In this blog, we will look at the various enforcement options available to ensure compliance post-resolution.

 Understanding the Terms

Before exploring enforcement options, it's crucial to have a clear understanding of the terms outlined in the agreement or court order. Whether it's a contractual obligation, financial restitution, or a change in behaviour, parties must be aware of their respective responsibilities to avoid misunderstandings and disputes in the future.

Negotiation and Communication

In some cases, non-compliance may stem from unforeseen challenges or changes in circumstances. The first step in enforcement should always be open communication. Parties can engage in constructive discussions to explore reasons for non-compliance, negotiate adjustments to the terms, or find alternative solutions that satisfy all involved.

Mediation and Arbitration

If direct negotiation proves unsuccessful, parties can turn to mediation or arbitration as alternative dispute resolution methods. These processes involve neutral third parties who can help facilitate discussions, clarify misunderstandings, and guide the parties toward a mutually agreeable resolution. Mediation and arbitration can be less adversarial than returning to the courtroom.

 Court Orders and Injunctions

When negotiation and alternative dispute resolution methods fail, seeking court intervention becomes an option to force compliance with agreements reached outside of court. The court can issue specific orders compelling parties to comply with the settlement terms or grant injunctions to prevent further breaches. Courts have the authority to enforce these orders, and non-compliance may lead to legal consequences for the defaulting party.

 Enforcing a Money Judgment

There are various options for enforcing a court judgment which orders a party to pay money to another. This can include High Court enforcement to take control of goods owed by the debtor (sometimes known as instructing the “bailiffs”), applying for an attachment to earnings order, applying for a charging order against property owned by the debtor, and winding up in the case of a company. There are many considerations when deciding which option to elect, taking legal advice at this point to ensure the right option is taken is crucial.

Renegotiation of Terms

In certain situations, circumstances may change after a settlement is reached. Parties can explore the possibility of renegotiating the terms to accommodate new developments, ensuring that the agreement remains fair and feasible for all parties involved.

 Successfully enforcing a settlement or court order requires a strategic and measured approach. While negotiation and communication are the first port of call, escalation to court intervention may be necessary in the face of persistent non-compliance. The key is to approach enforcement with a focus on fairness, adherence to legal processes, and a commitment to upholding the integrity of the dispute resolution system. By understanding these enforcement options, parties can navigate the post-settlement dispute resolution with confidence and ensure that the hard-won agreements lead to lasting compliance and resolution.

To discuss any post-dispute issues, contact Sarah Naylor at sarah.naylor@switalskis.com or call 01302 320621.

 

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Sarah has over 18 years’ experience in the legal sector. She is a Director and Solicitor as well as the Head of our Commercial and Disputes team

Director and Solicitor

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