The journey to getting the money that you are owed can often involve prolonged and costly courtroom battles. Each year, more cases filter into the court system, placing significant strain on its resources. This has necessitated a change in the process to encourage settlement outside of court and alleviate some of the congestion.
Mediation is now compulsory for all claims worth £10,000 or less in the County Court. Parties must attend a free, one-hour mediation session to provide the opportunity for a swifter and more consensual resolution.
What is mediation?
Mediation is a structured, voluntary process in which a neutral third party, known as a mediator, facilitates negotiation between disputing parties to help them reach a mutually acceptable resolution.
Unlike a judge or arbitrator, the mediator does not make decisions for the parties but assists them in finding common ground and resolving their conflict collaboratively. Although it is not mandatory for high-value disputes, mediation is certainly encouraged and can be just as effective at settling those high-value claims.
A duty to mediate?
It is well known that the court prefers proceedings to be a last resort for resolving disputes. Parties are strongly encouraged to consider negotiation or alternative dispute resolution (ADR) methods to settle their differences. This approach is taken seriously, as demonstrated in the recent case of Conway v. Conway & Anor (Rev1) [2024] EW Misc 19 (CC). The judge reduced the costs awarded to the winner because they had outright rejected the other party’s offer of mediation without justification.
Benefits of mediation
You should not consider mediation merely because the court wants you to, although that is reason enough. There are numerous advantages to settling a matter through mediation that benefits the parties, including:
- Cost effectiveness: Mediation is much less expensive than going to trial.
- Time saving: Mediation can resolve disputes much faster than the traditional court process, which can take months or even years. This is particularly beneficial for all parties involved who wish to avoid prolonged legal battles and the resulting costs.
- Confidentiality: Mediation sessions are private and confidential, whereas court proceedings are public. This can help protect the privacy of the parties and the details of the dispute.
- Control over the outcome: In mediation, the parties have more control over resolving their dispute. They work collaboratively to reach a mutually agreeable solution rather than having a judge make the decision for them.
- Preservation of relationships: Mediation is often less adversarial than litigation. It encourages cooperative problem-solving and can help preserve or even improve relationships between the parties, which can be especially important in disputes involving businesses, families, or long-term contracts.
- Flexibility: Mediation allows for more flexible solutions that a court might not be able to provide. Parties can agree on creative resolutions tailored to their specific needs and interests.
- Reduced stress: Mediation is generally less stressful than going to court. Its informal and collaborative nature can make it a more comfortable experience for the parties involved.
Contact Us
Our dispute resolution team at Slater Heelis has extensive experience in mediation. If you are involved in a dispute and would like to speak to one of our solicitors, use our online contact form, or by calling us on 0330 111 3131.