debt dispute and mediation case examples

Case example 1

A Construction firm commenced Court action for the balance of a substantial sum owed
The Defendant was refusing to pay claiming they had been overcharged for the work done
The Court referred the case to mediation
During mediation underlying personal issues were unearthed causing a breakdown in communication – both felt their reputation had been affected
The builder agreed financial concessions and customer agreed to pay an accepted amount
Thousands of pounds in legal costs were saved and reputations restored

A self-employed Financial Adviser owes £23k advanced by his Network Organisation in respect of loan agreement linked to future sales
Debt would be written-off if adviser stays with Network until a specified date and introduces agreed level of business
Adviser leaves before specified date saying did not receive adequate level of support from the Network in order to achieve agreed level of turnover
Parties agree to Intervention and after debate negotiate a settlement on the day and adviser agrees to a full and final payment of £14k to the Network
Legal action was avoided saving substantial costs and time

Financial Adviser is adjudged by the Financial Ombudsman to have sold a policy inappropriate for the client due to the high risk of the capital sum invested and is ordered to pay compensation of £70k.
The Adviser is a member of a Network Organisation who has paid the compensation to the client
The Adviser disputes the ruling saying he will fight the case in Court as the policy had not been miss-sold as the client was made fully aware of the risk and the policy was checked through the Network’s compliance department
The parties agree to Intervention and agreement is reached on the day for the Adviser to settle with a payment of £40k to the Network
Legal action was avoided saving substantial costs and time