Think Mediation Is Always Confidential? Think Again

A lot of people assume that whatever gets said in a mediation is locked away forever. And most of the time, that’s true — the whole point is to create a safe space where people can be open, realistic and honest.

But a recent High Court decision shows that confidentiality in mediation isn’t completely untouchable.

Pentagon Food Group Ltd v Cadman 2024 Case

The case (Pentagon Food Group Ltd v Cadman, 2024) started with a long-running dispute over a commercial property. After years of back-and-forth, the parties tried again to settle things at mediation. They actually reached a deal: one side agreed to buy the property for £900,000 on deferred terms.

There was only one slight problem. The seller didn’t own the property.

Not only that, but the director involved knew this at the time. Yet the company had previously said, in court documents and again during the mediation, that it did own it.

Unsurprisingly, that information shaped the negotiations and helped lead to the settlement.

When the truth finally came out, the deal collapsed and the Court had to decide whether it could look at what was said during the mediation. Normally, the “without prejudice” rule keeps that off-limits. But there’s an important exception: if someone is claiming they were misled into settling, the Court can look behind the curtain.

And that’s exactly what happened here. The judge found that the misrepresentation was real, the other side had relied on it, and the mediation evidence was needed to work that out.

The nuances of confidentiality in mediation

It’s a pretty stark reminder that “without prejudice” doesn’t mean “say whatever you like.” Mediation relies on trust — and the privilege that protects it isn’t there to cover for statements that are misleading or simply untrue.

For anyone involved in HR disputes, workplace issues, or commercial negotiations, the takeaway is simple: confidentiality in mediation is strong, but it won’t protect a lie. 

Facts matter, and what you say in mediation still has consequences.