In recent years, alternative dispute resolution (ADR) has been gaining greater significance in the legal world. This approach seeks to resolve disputes outside of the traditional courtroom setting, offering parties a more collaborative and informal process. The courts are now placing even more emphasis on the use of ADR, with the aim of promoting early resolution and reducing unnecessary legal costs.
One notable development in this regard is the introduction of mandatory mediation in money claims valued up to £10,000. As of May this year, parties involved in such claims are now required to attend a free one-hour mediation appointment. This move reflects the court’s commitment to encouraging parties to explore alternative methods of resolving their disputes. The Ministry of Justice has not ruled out mandatory mediation for higher-value county court claims.
Up until this time, mediation was a voluntary process in which a neutral third party, the mediator, assists the parties involved in the dispute in reaching a mutually acceptable agreement. The mediator helps facilitate open discussions, encourages effective communication, and assists the parties in identifying common ground. By encouraging parties to actively engage in the mediation process, the court aims to promote effective communication and settlement.
In addition to mandatory mediation for lower-value claims, there are signs that the courts will impose financial penalties on those parties that flatly refuse to engage in mediation or other forms of ADR. Details of a recent county court case, Conway v Conway & Anor, have emerged in which the judge applied a 25% reduction to the costs the defendants could recover because they had unreasonably refused to engage in ADR.
The emphasis on alternative dispute resolution by the courts is motivated by several key factors.
Firstly, ADR is generally more cost effective than traditional court processes. By avoiding costly and time-consuming trials, parties can save both time and money.
Secondly, ADR offers a more informal and flexible approach to dispute resolution. Parties can tailor the mediation process to meet their specific needs and interests. This allows for a more collaborative and client-centric approach, resulting in a settlement that is more likely to be accepted by both parties.
ADR also promotes early resolution; by encouraging parties to engage with ADR at an early stage, the court aims to prevent cases from escalating and to prevent unnecessary stress and strain on all parties involved.
The increased emphasis on alternative dispute resolution by the courts is a positive development and promotes a more conciliatory and client-centric approach to resolving legal conflicts.
O’Donnell Solicitors consider and advise on the use of ADR in all disputed cases and focus on achieving their client’s goals, whether that involves resolving the dispute in or out of court.
For further advice on a dispute or to discuss the suitable methods of ADR available, please get in touch.
