Simple Procedure was introduced in November 2016 for actions with a value up to £5,000. The new court rules were intended to make low value claims speedy, straightforward and economical, with parties being encouraged to explore means of Alternative Dispute Resolution (ADR).
What is mediation?
Mediation is a form of ADR. It involves an informal meeting whereby parties can express their views in private and try and reach a mutually agreeable solution. When a Simple Procedure court action is defended the court may refer parties to mediation. The action will be paused until the outcome of the mediation is known.
What happens at a Simple Procedure Mediation?
The mediator’s role is to assist parties in identifying the issues and exploring possible resolutions. The mediator is not a decision maker - it is for the parties to decide on the terms of any agreement.
Simple Procedure Mediations usually involve face-to-face meetings facilitated by a mediator. Parties will typically start by speaking to the mediator separately (in adjacent rooms), followed by a direct meeting ‘chaired’ by the mediator.
If mediation is successful, the court proceedings may be formally concluded without the need for any further input from the parties post-mediation.
What are the benefits of mediation in Simple Procedure?
Potential benefits include:
- A meeting fixed at a mutually convenient time;
- Parties being in control of the outcome – as opposed to having a court decision imposed on them;
- Helping to save or maintain relationships post-court proceedings; and
- If a resolution is reached at mediation an agreement can be concluded ‘there and then’.
What are the time & cost implications?
Mediations require more of a time commitment from the parties - and any solicitors acting for them - than would otherwise be the case at an early stage in the case. Parties may have to take half a day or more out of their diaries, without any guarantee of success. That can be a significant consideration, particularly for the lowest value disputes or in situations where positions appear particularly entrenched.
Despite the early time and (often) cost implications, a successful outcome at mediation can result in significant time and cost savings against an outcome determined by the court after a full hearing.
Conclusion
Mediation will not resolve all Simple Procedure actions and nor will the mediation process appeal to everyone. Experiences of the process will inevitably be mixed. That said, the reported success rates, its inclusive nature and the clear judicial support for it suggests that mediation is, indeed, seen by many as Simple Procedure’s best friend.
You can read more about the process in our previous articles:
Simple Procedure - Civil Online is now live
There’s a Simple Procedure for dealing with commercial debt recovery
Accurate at 15 November 2024.
