Parties in money claims up to the value of £10,000 must take part in a free one-hour mediation appointment, provided by HM Courts and Tribunals Service (HMCTS) Small Claims Mediation Service
Under measures introduced last week, parties who refuse mediation without good reason may be given a financial sanction or, in extreme circumstances, have their claim or defence dismissed by the judge, at the final hearing. Where parties have safeguarding concerns, such as domestic abuse or where there are vulnerable parties, mediation will not take place.
HMCTS has increased its mediators from 25 to 64. The county courts dealt with about 85,000 small money claims cases in 2022, with 20,000 of these cases opting for voluntary mediation resulting in more than half being settled.
Rebecca Clark, chair of the Civil Mediation Council, said: ‘Embedding mediation into the small claims process normalises a more conciliatory approach to dispute resolution.’
Law Society vice president Richard Atkinson welcomed the initiative but urged HMCTS to collect ‘as much data as possible’.
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