Property Development Mediation and Settlement Solicitors

Property development disputes do not always need to end with a court judgment. For developers, investors, landowners, property companies and special purpose vehicles (SPVs), the better commercial outcome may be a negotiated solution that protects the underlying development, preserves funding, maintains momentum and avoids value being lost through delay, uncertainty and escalating legal costs.

At The Jonathan Lea Network, we advise and represent clients in the mediation and settlement of substantial property development disputes. We help you prepare for mediation, define a realistic settlement strategy, conduct without-prejudice negotiations, document binding settlement terms and, where proceedings are already on foot, put the agreed outcome into the appropriate court order.

Our role is not simply to encourage compromise. We identify where your legal and commercial leverage lies, test the strengths and weaknesses of the opposing position and structure a settlement that reflects the economics of the project. Where the parties need to continue working together, we can also help redesign the relationship so that the development can progress on clearer and more workable terms.

How We Can Help

We provide end-to-end settlement support for property development disputes, including:

– preparing the legal and commercial case for mediation;

– advising on mediator selection, timing and mediation strategy;

– preparing position statements, chronologies, schedules and supporting documents;

– identifying settlement parameters, walk-away positions and commercial priorities;

– conducting without-prejudice and without-prejudice-save-as-to-costs negotiations;

– drafting and negotiating settlement agreements, releases, variations and side agreements;

– preparing consent orders and Tomlin orders where court proceedings have been issued;

– structuring buyouts, revised funding arrangements, governance changes and agreed exits;

– coordinating settlement terms with property, corporate, construction and finance documentation; and

– advising on implementation, security, payment mechanics and enforcement if the settlement is not honoured.

Because property development disputes often cut across corporate, property, construction and finance issues, our dispute resolution lawyers can work with colleagues across JLN where the settlement requires more than the payment of money or the discontinuance of a claim.

The Court’s Approach to Alternative Dispute Resolution

The civil courts now have express powers to order or encourage parties to use alternative dispute resolution (ADR) where appropriate. Following the Court of Appeal’s decision in Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416 and the consequential amendments to the Civil Procedure Rules which came into force on 1 October 2024, promoting or using ADR now forms part of the overriding objective under CPR 1.1(2)(f), and the court’s active case management duty under CPR 1.4(2)(e) expressly includes ordering or encouraging the parties to use, and facilitating the use of, ADR.

The costs consequences matter commercially. When exercising its discretion as to costs, the court may take into account a party’s failure to comply with an order to engage in ADR, or an unreasonable failure to participate in ADR proposed by another party. Declining to engage with a mediation proposal therefore carries litigation risk in its own right, independently of the merits of the underlying claim.

We advise on the strategic and procedural position, including when to propose ADR, how to respond to a proposal from the other side and how to preserve your position if a process is proposed at an inopportune moment.

Preserving the Economic Value of the Development

A property development dispute can destroy value even when one party ultimately succeeds on the legal issues. A stalled project may incur continuing interest, contractor and consultant costs, holding costs, planning or programme pressures, lost sales opportunities and further funding requirements. Relationships with lenders, joint venture partners, landowners and delivery teams may also deteriorate while the dispute continues.

That is why our settlement advice focuses on the value of the project as a whole, rather than only the value of the legal claim. A court may be able to award damages, grant declarations or make other legal orders, but it will not necessarily recreate the commercial structure needed to complete a development profitably.

Mediation and negotiated settlement can give the parties greater flexibility. Depending on the circumstances, a resolution might involve revised funding, a change in management control, a buyout, a new timetable, a variation to profit-sharing arrangements, a sale of the site or units, amended security, releases, staged payments or an orderly separation. The right solution may preserve substantially more value than a binary win-or-lose outcome after lengthy proceedings.

Mediation Preparation

The quality of the preparation before a mediation can be as important as what happens on the day. We work with you to identify the legal issues, the evidence that matters, the commercial drivers behind the dispute and the outcomes that are realistically available.

Our preparation can include reviewing the joint venture agreement, shareholders’ agreement, development agreement, finance documents, construction contracts, board minutes, budgets, valuations, correspondence and other key project records. We can prepare a clear chronology, identify disputed facts and quantify the financial consequences of competing positions.

We also help you decide what information should be shared in advance and what should remain confidential within your own team. In complex development disputes, carefully selected financial information, updated valuations, cashflow forecasts or project programmes can sometimes unlock a settlement that would not be achievable through legal argument alone.

Where appropriate, we prepare the mediation position statement and supporting bundle, liaise with the mediator and the other side, and help ensure that the people attending have the information and authority required to negotiate effectively. We will also prepare you for the practical dynamics of mediation so that important decisions do not have to be made for the first time under pressure.

Settlement Strategy

A settlement strategy should be built around your commercial objectives, not an arbitrary compromise figure. Before negotiations begin, we will help you understand the likely outcomes if the dispute does not settle, including litigation risk, timing, legal cost, management distraction and the effect of delay on the development.

We can then identify a sensible settlement range and distinguish between issues that are genuinely essential and those that can be used as negotiating variables. In a property development context, the terms that matter most may include control of the SPV, access to further funding, release of guarantees, repayment priorities, future profit participation, responsibility for cost overruns, completion of specified works, access rights, disposal strategy or the timing of an exit.

We also consider sequencing. A settlement proposal made too early, without sufficient information, may be undervalued or misunderstood. A proposal made too late may come after significant value has already been lost. We help you choose the right moment and the right form of approach, while preserving your legal position if agreement cannot be reached.

Without-Prejudice Negotiations

Many property development disputes settle through direct negotiation between solicitors, either before mediation or alongside it. We can lead those negotiations on your behalf and advise on whether communications should be made on a without-prejudice basis, without prejudice save as to costs, under Part 36 where appropriate, or on an open basis.

The distinction can be important. Genuine without-prejudice negotiations are generally intended to allow parties to explore settlement without the substance of those discussions being put before the court on the merits. Without-prejudice-save-as-to-costs communications may later be relevant to costs. Part 36 offers operate under a specific procedural regime and can carry defined costs consequences if the relevant requirements are met.

We will advise on the appropriate route for the particular objective. Our focus is on making offers that are clear, commercially coherent and capable of implementation, while avoiding ambiguity about what is being released, what remains outstanding and what happens if agreed steps are not completed.

Settlement Agreements

Reaching agreement in principle is only part of the process. The settlement document needs to capture the deal accurately and deal with the practical consequences of ending or restructuring the dispute.

We draft and negotiate settlement agreements covering issues such as payment terms, releases and waivers, confidentiality, non-disparagement where appropriate, costs, tax treatment, interest, security, guarantees, completion mechanics, transfer of shares or property interests, resignation or appointment of directors, delivery of documents and information, future cooperation and consequences of default.

For development disputes, the settlement may also need to vary or supplement existing project documents. We can coordinate the settlement with shareholder or joint venture agreements, development agreements, facility documents, guarantees, construction appointments or property documentation so that the legal settlement and the commercial implementation work together.

Where settlement is achieved at mediation, we can draft heads of terms or a full settlement agreement before the mediation concludes. This is important because a deal that appears clear at the end of a long mediation can unravel later if material points have been left unresolved or the drafting does not reflect the commercial bargain.

Tomlin Orders and Settlement of Existing Proceedings

Where court proceedings have already been issued, the parties may need an order to bring the active litigation to an end while preserving a mechanism for enforcing the settlement. Depending on the terms agreed, a consent order or Tomlin order may be appropriate.

A Tomlin order typically stays the proceedings on agreed terms set out in a schedule and allows a party to apply to the court to enforce those terms if necessary. It can be particularly useful where the settlement includes commercial obligations that go beyond a straightforward judgment for a sum of money, such as staged payments, transfers, releases, variations or other steps that need to occur over time.

We can draft and negotiate the order and schedule, ensure the settlement interacts properly with the existing claim, deal with costs and discontinuance or stay provisions, and advise on what should happen if one party defaults. Where a different form of consent order is more suitable, we will recommend that instead.

Commercial Restructuring of the Relationship

A development dispute does not always mean that the parties should separate. Sometimes the most valuable settlement is a reset of the relationship on terms that address the causes of the dispute and make future decision-making clearer.

We can help negotiate and document commercial restructuring arrangements such as:

– changes to ownership percentages or economic participation;

– a buyout or partial transfer of one party’s interest;

– revised capital contribution and funding obligations;

– new arrangements for development finance or shareholder loans;

– changes to board composition, voting rights and reserved matters;

– revised management, development or project delivery responsibilities;

– new approval thresholds for budgets, cost overruns or material contracts;

– amended profit waterfalls, priority returns or repayment mechanics;

– agreed disposal, refinancing or exit processes;

– release or replacement of personal or corporate guarantees; and

– additional reporting, information and transparency obligations.

In a joint venture dispute, these changes can be the difference between an asset remaining trapped in deadlock and the project returning to a commercially workable footing. Our corporate and property teams can support the implementation of any revised ownership, governance or transactional structure required by the settlement.

When Mediation Can Be Particularly Effective

Mediation can be useful at many stages of a property development dispute, but it is often particularly valuable where the parties remain commercially connected or where delay itself is damaging the asset.

Examples include disputes where additional development funding is urgently required, where a deadlock is preventing key decisions, where a lender or investor needs certainty, where cost overruns are escalating, where the parties disagree over whether to sell or continue the project, or where one party wants to exit without triggering a wider collapse of the structure.

It can also be effective where the legal dispute is only one part of a broader commercial disagreement. A mediator can help the parties explore outcomes that a court would not ordinarily impose, while we protect your legal position and advise on the consequences of the terms being discussed.

What Happens During a Mediation?

The precise format varies, but commercial mediations commonly involve the parties and their advisers attending for a dedicated day with an independent mediator. The mediator may hold an initial joint session and then meet each side separately in confidential private sessions, moving between the parties to explore the issues and possible settlement terms.

We attend with you, present and protect your position, advise on proposals as they develop and help assess the legal and commercial implications of any concessions. The mediator does not decide the dispute or force either side to accept a deal. If a settlement is reached, we work to ensure that the agreed terms are recorded accurately before the mediation ends wherever possible.

If the Dispute Does Not Settle

A mediation that does not result in settlement is not necessarily wasted. It can clarify the real issues, reveal where the commercial gap lies and provide a more informed basis for subsequent negotiation. It may also help the parties identify what evidence or expert input is needed if the matter proceeds.

If settlement is not achievable, we can continue to advise on the litigation or arbitration strategy, including urgent applications, disclosure, witness and expert evidence, further settlement offers and preparation for trial. The work undertaken for mediation will usually form part of that wider case strategy rather than sitting separately from it.

Why Use JLN for Property Development Mediation and Settlement?

Property development settlements often require a combination of contentious and transactional expertise. A deal may need to resolve the existing claim while also changing the ownership of an SPV, varying funding obligations, transferring property rights or amending project documents.

JLN offers a multidisciplinary approach. Our dispute resolution lawyers can work alongside our corporate, commercial property and construction teams where required, so that the proposed settlement is considered not only as an end to litigation but as a workable commercial arrangement for the project.

We act for developers, investors, landowners, property companies, joint venture partners and SPVs in substantial disputes where the value, complexity or strategic importance of the development warrants experienced legal support. Our approach is practical, commercially focused and directed towards protecting value, leverage and optionality.

Frequently Asked Questions: Failed Property Development

Speak to Our Property Development Disputes Team

If a property development dispute is putting a project, investment or commercial relationship at risk, early settlement planning can help preserve options and prevent unnecessary value erosion.

Contact The Jonathan Lea Network to discuss mediation, without-prejudice negotiations or a wider settlement strategy. We can review the legal and commercial position, prepare you for negotiations and help structure and document a resolution that protects the underlying project as far as possible.

For an overview of our wider work in this area, see our Property Development Disputes Solicitors page.

Contact Us

We provide most enquiries with an indicative scope of work and fee estimate, based on the information you share. We aim to respond within one working day.

In the same email you will be invited to arrange a 20-minute complimentary, no-obligation video consultation, should the proposed scope of work and fee estimate be of interest. This initial discussion is designed to better understand your requirements, refine the scope and ensure our approach is fully aligned with your objectives, at the end of which we will email you a definitive formal fee estimate to consider and approve.

Where you would prefer to receive initial advice and guidance from the outset, or where a short introductory call would not be the most appropriate starting point, we may instead recommend a 2.5-hour fixed-fee appointment, starting from £700 + VAT. This enables us to review the information you provide, discuss your situation with you and provide considered, tailored advice at an early stage.

To make an enquiry, please email us at wewillhelp@jonathanlea.net, complete our contact form, or call us on 01444 708640.