Alternative Dispute Resolution and ATE Insurance

As recent changes to arbitration law and judicial attitudes towards mediation take shape, commercial dispute resolution is undergoing notable developments. For solicitors and their clients, it is becoming increasingly important to assess when and how to make use of alternative dispute resolution (ADR) – whether through arbitration or mediation – as an effective and credible path outside of the courtroom.

At Temple Legal Protection, we understand the growing significance of ADR in commercial cases and offer ATE insurance policies that reflect this change.

Arbitration and Mediation: What’s Changing?

The Arbitration Act 2025 is set to modernise key aspects of the arbitration process. It introduces procedural reforms to reduce delays, clarify court involvement, and reinforce the enforcement of arbitral awards. These reforms are intended to preserve London’s reputation as a leading arbitration centre and to provide commercial parties with a more efficient framework for resolving disputes.

Meanwhile, mediation continues to gain judicial backing. Courts are increasingly willing to expect parties to mediate – not only before a trial, but also in costs disputes after a case concludes. The ruling in Charles Elphicke v Times Media Ltd underlines this trend, with the court directing the parties to engage in mediation over costs. This decision reinforces the idea that ADR may no longer be a voluntary step, but in some circumstances, a judicial requirement.