Rajinder Rai looks at the latest government changes around mandatory mediation
The government’s two-year plan to press for mandatory mediation began in May 2024, with the HMCTS Small Claims Mediation Service, for claims less than £10,000. Now the plan is to extend mediation into higher value claims, for £10,000-£25,000, and then multi-track claims where the value of the claim is over £25,000.
Changes to the Civil Procedure Rules (CPR) will mean that judges will be required to actively assess in every case whether to “order or encourage” parties in dispute to engage in mediation or another method of alternative dispute resolution (ADR).
As a result, courts could begin directing parties to participate in mediation, whereas previously it only had to encourage or require them to consider ADR. Mediation or another method of ADR remains a voluntary process to try and settle a dispute. with mediation having an established high success rate. Given the costs sanctions which have been imposed where parties unreasonably refuse to participate in ADR, it would be prudent to consider it without waiting for a court to impose it.
To summarise, ADR is no longer just an option on the fringes of the litigation process. With these new rules, it is well on its way to becoming a central part of dispute resolution in the UK, delivering faster and more cost-effective outcomes for all parties.
