Commercial 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.
The implications for commercial litigators
For commercial litigation solicitors, these developments raise several practical considerations:
- Contract reviews: Dispute resolution clauses in commercial agreements should be revisited to assess whether arbitration or mediation might offer strategic benefits.
- Awareness of cost risks: Courts may impose cost penalties where parties unreasonably decline to engage in ADR, even when the dispute concerns legal costs.
- Keeping up with reforms: Understanding the detail and impact of the Arbitration Act 2025 will be important for staying ahead of procedural changes.
- Working with ADR professionals: Building and maintaining links with experienced arbitrators and mediators can help shape more effective dispute strategies.
How Temple can support your commercial clients
We recognise the value of resolving disputes at the right time and in the most appropriate forum. Whether a case is resolved by arbitration or mediation, our ATE insurance policies are designed to give your clients confidence in their options.
Our cover includes:
- Adverse costs – if the case does not succeed, we cover the opponent’s legal costs.
- Disbursements – including arbitrator fees or mediation costs, subject to policy terms.
- Flexibility – cover is available at any stage of the process, including after litigation has begun but before settlement discussions or ADR hearings.
Our approach allows solicitors and their clients to pursue or defend claims with appropriate financial protection, reducing the risk that costs become a barrier to accessing justice.
Speak to us
To find out more about ATE insurance for commercial arbitration or mediation, or to discuss a case in confidence, please call Matthew Pascall on 01483 577877 or vis email to
