This move by the UK Government could help unblock the County Court system, or it could disadvantge those who don’t have the sills, legal jargon knowledge or time, to fight their corner against bigger companies and government appointed agencies chasing various fines, penalties and debts associated with those disputed incidents. You only have to listen to the evidence at the Post Office/Horizon inquiry to see how easily such systems are abused by those with plenty of money, time and resources at their disposal.
Here’s the word;
The change, which comes into effect today (22 May 2024), means parties in money claims up to the value of £10,000 must take part in a free one-hour mediation appointment, provided by HMCTS’ Small Claims Mediation Service. These types of claims often include issues such as businesses recovering debt from customers, individuals contesting parking tickets, or disagreements over payments for goods and services – such as a homeowner suing builders for not completing work as agreed.
Today’s move could see an extra 5,000 judicial sitting days per year made available, which judges can dedicate to efficiently resolving cases less suited to mediation.
Justice Minister Lord Bellamy KC said:
We know successful mediation is quicker and less stressful than court battles. While not every case will be resolved in this way, by embedding mediation into the courts process, thousands more undoubtedly will.
Crucially this will improve the experience for those embroiled in a dispute, while freeing up time for our judges to focus on the most complex cases and keep our courts running smoothly.
About 85,000 of small money claims cases progressed through the County Courts in 2022. Parties in 20,000 of these cases opted into voluntary mediation, and the HMCTS service was able to help settle more than half of those.
It is anticipated integrating mediation into the court process will result in tens of thousands of successful out-of-court resolutions.
To support this, HMCTS has more than doubled the number of mediators employed, from 25 to 64. Extra administrative staff have also been recruited, and online systems improved.
Akeela Amijee, a mediation service manager with HMCTS, said:
Mediation is a brilliant service and making it an integrated step in the court journey is incredibly exciting. We are absolutely ready for this expansion and it’s going to make a really positive difference to a lot of people. I’ve never had anybody say they wish they hadn’t had their mediation session, even when they don’t settle.
Going to court and standing in front of a judge can be nerve-racking for people, not to mention the time and money spent travelling to a court. Mediation works because it allows people to be heard and get everything off their chest in a calm, non-judgemental environment. We are neutral and take out any of the hostility between parties, which means an hour is often more than enough time to resolve these cases.
Mediation sessions are generally organised within 28 days, which is often much quicker than the wait for a court date. It is also a cheaper alternative to court as there is no hearing fee to pay.
HMCTS mediators speak to each side separately and work between the two to find a solution each side can agree on. If the parties do not agree on a resolution at mediation, the case will progress to a hearing before a judge.
If a party does not attend the required mediation appointment without good reason, the judge may apply a sanction at the final hearing. This could include a fine, covering the cost of the wasted mediation appointment, or in extreme circumstances having their claim or defence dismissed.
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