Through a mediation process, Channel 4 and the phoneline operator Eckoh yesterday reached an agreement and dropped legal action against each other in the Richard & Judy phone-in dispute.

A spokesperson for Eckoh said: “Eckoh announces that they and Channel 4 decided to resolve their differences through mediation rather than through the courts.  Following a successful mediation held on December 1, both parties have reached an agreement and all matters relating to this dispute are now settle”.

Channel 4 has said that Eckoh breached their contract in an effort to recover the £1 million fine it received from Ofcom when viewers were not able to have a chance of winning the Richard & Judy You Say We Pay competition on the show last year. Eckoh had denied any liability and issued a counter claim against Channel 4. No other details have been disclosed about the agreement reached via mediation between the two parties. Mediation can be used as a process to reach a mutual agreement between any two parties, whether that is companies, as in this case, or individuals, as is usual in family mediation.