Gone are the days where a potential claim would be identified, the insolvency practitioner would ask creditors to provide a fighting fund to pay for the costs of pursuing the claim and the deafening silence would be the end of it.
With the advent of no win no fee Conditional Fee Agreements (“CFAs”), the availability of ATE insurance to cover adverse costs where the premium is rolled into the policy and a growing body of solicitors and barristers willing to engage on that basis more and more claims are being pursued in insolvencies.
Of course with the legal team charging uplifts under CFA agreements costs quickly become a major issue and it makes sense to settle early, particularly where the ability to pay in full is in question.
This drew me towards mediation and got me thinking that my technical skills and commercial experience gained as a licensed insolvency practitioner and the people skills of a trained mediator would be a winning combination when seeking to resolve insolvency related disputes.
So I obtained accreditation by CEDR as a mediator. As a licensed insolvency practitioner I have settled all types of insolvency related claims including illegal dividends, overdrawn loan accounts, offences under the antecedent transaction provisions in the Insolvency Act 1986 and breach of duty claims. Not only do I have a deep understanding of the technical arguments that are commonly deployed but also appreciate the constraints imposed on and motivations of the insolvency practitioner involved.
Mediation provides a cost effective means of resolving insolvency related disputes at an early stage particularly on smaller claims before costs become overwhelming and positions become entrenched.