This issue was considered in Northrop Grumman Mission Systems Europe Ltd v BAE Systems (Al Diriyah C4I) Limited  EWHC 3148 (TCC). The case looked at whether the Defendant was entitled to terminate a licence agreement for convenience.
Before proceedings had commenced the Claimant requested mediation on numerous occasions but the Defendant declined. The Defendant did however make a settlement offer, which the Claimant also declined. It was later found that the Defendant was entitled to terminate the agreement.
The Claimant then sought a reduction of the Defendant’s recoverable costs because of its unreasonable refusal to mediate. Often, instead of moving straight to litigation, parties choose to engage in forms of Alternative Dispute Resolution (“ADR”) like mediation to avoid the cost of litigation and try to resolve the dispute without resorting to court action.