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01 September 2023
Issue: 8038 / Categories: Legal News , Mediation , ADR , Profession
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NLJ this week: Mandatory mediation—unneeded in commercial claims?

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Compulsory mediation sounds like an oxymoron to the uninitiated, but is a serious government proposal. In this week’s NLJ, Catherine Penny, partner at Stevens & Bolton, asserts that it can work well for lower value claims, but questions its value for larger commercial claims.

In July, the government announced it intends to go ahead with plans for mandatory mediation for all defended Pt 7 civil claims in the county court (mainly claims valued at less than £10,000), with a plan subsequently to extend this to larger claims worth up to £25,000.

So far so good, but will this lead to mandatory mediation for larger commercial claims in the High Court? Penny puts forward a strong case against such a move, citing convincing reasons why this should not happen, including that High Court cases ‘can involve hundreds of pages of pleadings, thousands of documents in disclosure, and multiple witnesses (both factual and expert)’. Moreover, the decision as to when to mediate is ‘part of a litigant’s litigation strategy’—mandatory mediation risks not only ruining the chess moves but wasting costs, generating additional case conferences and trespassing into the territory of client privilege. 

Find the full argument here.

MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

Signature Litigation—Catherine Naylor

International fraud and asset recovery offering boosted by partner hire

Stevens & Bolton—Alexa Payet

Stevens & Bolton—Alexa Payet

Private wealth disputes team adds contentious probate specialist

Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

Firm strengthens investigations and sanctions capabilities with London partner hire

NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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