Mediation could become compulsory

Compulsory mediation could be introduced for small claims worth up to £10,000, under Ministry of Justice (MoJ) proposals.

Its consultation, Increasing the use of mediation in the civil justice system, launched this week and ends on 4 October. It proposes that people be automatically referred to a free hour-long telephone session with a professional mediator provided by HM Courts and Tribunals Service before their case can be progressed to a hearing. If a solution is brokered, both parties will agree by telephone to make it legally binding through a settlement agreement.

Personal injury and housing disrepair cases will be excluded.

The MoJ expects about 272,000 people would access the mediation, with up to 20,000 extra cases settled, freeing up 7,000 judicial sitting days (read more here).

Three cities in Ontario, Canada have used mandatory mediation for more than 20 years, with studies showing reduced time to dispose of cases, decreased costs to litigants and a high proportion of cases settled at an early stage, according to Ontario Bar Association executive member Jennifer Egsgard.

Matthew Maxwell Scott, executive director of ACSO (Association of Consumer Support Organisations), said: ‘Recent ADR (alternative dispute resolution) pilots ACSO's members led on proved to be a successful means of dealing with Stage 3 claims in the MoJ Claims Portal, and we see no reason why this cannot be extended to defended small claims in the County Court.’

Stewart McCulloch, managing director of digital ADR provider Claimspace, said: ‘By freeing up judicial time, the proposed system will undoubtedly bring about a reduction in the long wait for a small claims trial for those cases that cannot be resolved through mediation―currently in excess of 51 weeks.’

Matt Currie, chief legal officer at Minster Law, emphasised that parties must be ‘encouraged to work in harmony to find common ground rather than seeking out areas of friction’.

The government also intends to ratify the Singapore Convention, an international agreement on the recognition of mediated settlements.

James South, CEDR chief executive, welcomed both announcements, on the Singapore Convention and mandatory mediation, which showed ‘mediation is now an integral part of the civil dispute resolution landscape’.