A judgment from the District Court of Lyngby establishes that refusing to participate in court mediation can have concrete consequences regarding the awarding of legal costs, even for the party that ultimately achieves the desired outcome.
The case, at the district court, concerned payment for work performed. During the preparatory stage, the court proposed mediation based on an assessment of the work’s value. However, the company declined to participate. The case was later concluded at the main hearing with a settlement that corresponded to the initial assessment.
In its decision on legal costs, the court emphasized the fact that the company had refused to participate in court-ordered mediation.
The Court emphasized procedural conduct
The court emphasized that, under the Danish Administration of Justice Act, the parties must advance the case efficiently, avoid unnecessary procedural steps, and consider settlement options. According to the Act, a party that fails to do so may be ordered to bear the costs that their conduct has caused.
In this case, this meant that the company – despite being the prevailing party in the settlement – was ordered to pay part of the legal costs, totaling DKK 55,500, of which DKK 40,000 related to legal fees and DKK 15,500 to court fees. The court emphasized that the case could realistically have been resolved earlier through mediation, which would have significantly reduced the costs.
Littler notes
The judgment represents a step towards a more active use of court mediation in Danish legal practice. It sends a clear signal that, when assessing legal costs, the court considers not only the outcome but also the parties’ conduct, including their willingness to explore alternative dispute resolution methods.
For lawyers, this means that mediation is not only a tool to resolve disputes quickly, but also a factor that may affect the client’s financial risk and the lawyer’s advisory obligations.
Enquiries and questions regarding the article can be directed to Senior Director Marietta Bak Seemholt at This email address is being protected from spambots. You need JavaScript enabled to view it. or +45 41 94 81 57.
Disclaimer: This article does not and cannot replace legal advice.
