If a party does refuse to engage in Alternative Dispute Resolution, there can be quite significant consequences. The costs of the proceedings are ultimately within the discretion of the Court. Usually, the losing party will pay the winning party’s costs, though there are some circumstances in which costs can be paid out of the estate.
However, when deciding who is to pay the costs of the proceedings the Court will take into account the conduct of the parties throughout, which will include to what extent they have engaged in ADR. If one party has refused to engage, they may be penalised heavily in costs, paying not only their own costs but also the opponent’s costs, irrespective of whether they win or lose.