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Courts out of favour

Australia’s largest companies are opting for voluntary mediation rather than proceeding with litigation, according to law firm Minter Ellison. Corporate litigation group head Ann Donohue said the costs of “large dollar commercial disputes” are the main reason behind the trend. 

There are more retired judges offering their services as mediators and most courts now approve mediation as a first step towards resolving disputes. In-house lawyers are helping the trend by actively pushing for mediation because they usually have first-hand knowledge of how protracted litigation can become and the expenses involved. 

She said the trend away from litigation is further advanced in Britain and the US. Many of the “magic circle” law firms are booming due to mediations involving disputes between corporations in different countries.