Are we moving toward mandatory mediation in commercial disputes?
A working group of the Civil Justice Council has been considering the future role of mediation in disputes and how parties can be encouraged to engage in it. The working group found that, despite the warnings given by the courts of the danger in refusing to mediate, the use of ADR remains “patchy and inadequate”. However the Law Society has pushed back against mandatory alternative dispute resolution as a condition for issuing a claim on the basis that to make such a process compulsory would frustrate the principle that all litigants should have access to the judicial system.
Whilst any such changes are likely to have more effect on those claims issued via the small claims track and in particular low value, high volume claims such as Road Traffic Accident claims etc. the discussions serve as a useful reminder for all those involved in litigation of the importance placed by the judiciary in utilising ADR in an attempt to reach an early settlement. Whilst the courts have been actively managing the larger commercial cases for many years and encouraging ADR once a claim has been allocated, it may be that this approach is to be rolled out in all cases. We are expecting a final report, recommending the best way to proceed, to be submitted to the government later in 2018. In the meantime, if you are involved in litigation and concerned about minimising your exposure to costs call us to discuss possible ADR.
Posted on 02/06/2018 by Ortolan