Written by

Philip Young

Founder of Garfield

Table of contents:

Why Mediation Is Encouraged in Small Claims

Conclusion

Why mediation is encouraged in small claims

Explore the benefits of mediation in small claims cases within the English court system, including cost-effectiveness, time efficiency, confidentiality, and relationship preservation.

A mediator and two people talking

Mediation in the context of small claims before the English courts is a form of alternative dispute resolution (ADR) that parties are encouraged to consider before proceeding to a trial. This process involves a neutral third party, known as the mediator, who helps the disputing parties to reach a voluntary, mutually beneficial resolution. Unlike judges or arbitrators, mediators do not decide the case or issue binding decisions. Instead, they facilitate discussions and negotiations, helping the parties to understand each other's perspectives and to explore creative solutions.

Why Mediation Is Encouraged in Small Claims

1. Cost-Effective Resolution: Mediation typically saves time and trouble than going to trial. Mediation is a standard step in most small claims (that occurs after a case is allocated to the small claims track) and tends to resolve disputes faster than the formal court process, significantly reducing costs for all involved parties.

2. Time Efficiency: Court schedules can be backlogged, leading to longer than ideal waiting periods for a hearing date. In contrast, mediation occurs much sooner (and can even be scheduled as soon as both parties agree to the process and find a suitable mediator). A successful mediation can resolve disputes in a matter of hours or days, allowing parties to avoid the rest of the Court process.

3. You are more likely to be paid. If you are a claimant bringing a debt claim, if at a mediation you and the debtor reach an agreement, the debtor is more likely to pay as the debtor has psychologically “bought in” to that agreement.

4. Confidentiality: Unlike Court proceedings, which are typically public, mediation is a private process. The discussions and any agreements reached are confidential. This aspect can be crucial for parties who prefer to keep sensitive information out of the public eye or wish to maintain a relationship post-dispute.

5. Control Over the Outcome: Mediation offers parties more control over the outcome of their dispute. Since the resolution is mutually agreed upon, both parties can negotiate terms that are more precise and tailored to their needs, as opposed to a court verdict, which might be more general and imposed by a judge.

6. Preservation of Relationships: Small claims often involve parties who have existing relationships, such as business-business or consumer-business relationships. Mediation helps preserve these relationships by promoting collaborative problem-solving and communication. By focusing on mutual interests and understanding, mediation fosters a less adversarial process than a court trial.

7. High Success Rate and Enforceability: Mediation has a high success rate in resolving disputes, with many cases concluding with a mutually acceptable agreement. Agreements reached through mediation can and usually should be made legally binding and enforceable, similar to a court order, if both parties consent.

8. Flexibility: Mediation sessions are more informal and flexible than court proceedings. The process can be tailored to the needs of the parties, including the timing, structure, and rules for the mediation. This flexibility can make the dispute resolution process less intimidating and more accessible for individuals unfamiliar with the legal system.

9. Emotional and Psychological Benefits: The informal and collaborative nature of mediation can reduce the stress and anxiety associated with litigation. It allows parties to express their feelings and grievances in a safe environment, which can lead to a more satisfying resolution and the feeling of being heard and understood.

Conclusion

In small claims cases, mediation offers a pathway to resolve disputes that is quicker, more cost-effective, and less burdensome than traditional litigation. It provides a confidential, flexible, and less adversarial forum to address and settle conflicts, with the added potential of preserving personal or business relationships. By promoting direct communication and mutual understanding, mediation not only resolves the immediate issue at hand but also equips parties with tools for better handling future disputes. For these reasons, mediation is highly encouraged in the English court system for small claims disputes.