Why Mediate?

“What I have found profoundly unsatisfactory…is that the parties have spent in the region of £100,000 arguing over a claim which is worth about £6,000…mediation is a perfectly proper adjunct to litigation…the results are astonishingly good. Try it more often” per Lord Justice Ward  Egan v Motor Services (Bath) Ltd [2008] 1 WLR 1589 para 53

There are many benefits to mediation, some are more relevant to certain disputes than others, though all disputes share the main benefits listed below.

A few of the key benefits of Mediation relate to Time, Cost, Control, Outcome, Confidentiality and Relationships

A quick comparison*

  Mediation Litigation
Cost Up to £750 + VAT (per party) £4,095
Time Book at any stage In excess of 6 months to trial
Confidentiality Completely Confidential Generally, not confidential
Control Parties retain control Judge and Court control
Relationship Easier to maintain relationship Relationship’s often damaged after court
Outcome Anything parties want (that is legal) Very small range of outcomes

* This is a simplified example based upon a £20,000 dispute and a ½ day trial, 6 witnesses in total including claimant and defendant, no expert evidence required. Barrister fee for ½ day (including written advice before trial) £1,200; Solicitor fees £1,350; Issue Fee: £1,000; Hearing Fee: £545. Whilst each party is liable for their own cost in the mediation (max £750 + VAT each) the losing party in litigation may have to pay the costs of the winner. Ie if the claimant is suing for £20,000 and loses at trial he or she may end up adding £8,000 of legal fees to their £20,000 loss.

Risk of refusing to mediate

Increasing piles of money with judges gavel

The courts will not force parties to mediate, though they strongly encourage it in order to keep everybody’s costs to a minimum.  Parties are, however, required by the Civil Procedure Rules to consider Alternative Dispute Resolution. Where parties unreasonably refuse to engage in mediation the court often penalises that party in costs. This can be very significant – even the winning party can be penalised in costs if he or she failed to mediate without reasonable excuse. For more information on the court’s approach to failure to mediate click here.