A Route to Better Outcomes

The recent pre-trial review hearing in the branding dispute between Superdry and Manchester City’s commercial arm has broader significance. It highlights the powers now to be exercised by courts to mandate mediation and overrule objections.

The ruling aligns with the push to ease court congestion and promote cost-effective resolutions.

Better outcomes

The New Approach

The pre-trial hearing in DKH Retail Ltd & Ors v City Football Group Ltd related to a dispute involving football, beer, and fashion, and it represents a shift towards alternative dispute resolution (ADR) as a solution to court backlogs and more efficient case resolution.

With rising caseloads and stretched judicial resources, the judiciary has been actively encouraging ADR to reduce reliance on lengthy and expensive litigation. Amendments to the Civil Procedure Rules (CPR) last October confirmed the courts’ ability to mandate mediation, as outlined in the Court of Appeal’s ruling in Churchill v Merthyr Tydfil County Borough Council.

DKH

The dispute in DKH was straightforward. Superdry, the fashion brand, sued City Football Group, which runs Manchester City Football Club’s commercial operations, over branding on football kits. The central issue was whether the words ‘Super’ and ‘Dry’ on the kits would be associated with Superdry rather than with a City sponsor.

Superdry requested mediation, arguing that resolution outside court was feasible and could save significant legal costs. The defendant opposed this arguing that mediation had little chance of success and that it required a judicial ruling for clarity.

The Decision  

The court dismissed objections affirming that mediation is often capable of resolving even deeply entrenched disputes. Given the case’s straightforward nature, mediation was  ordered.  By January, the case had settled—a testament to the power of ADR in avoiding unnecessary litigation.

The future for resolving Disputes

This ruling signals judicial expectation that parties attempt mediation before proceeding to trial. Courts will increasingly mandate mediation, even where one or both parties are resistant. This shift will not only help clear court backlogs but also lead to more flexible, cost-effective, and mutually beneficial outcomes.

Embracing ADR may soon become an essential step in resolution of all types of disputes and better outcomes at much reduced costs to all concerned.