Costs and Time

Mediation is considerably less expensive than litigation and takes less time for an outcome to be reached. Parties have an opportunity to engage in constructive discussions at an early stage before legal costs escalate and become a stumbling block themselves.

One example from the National Mediation Helpline shows how litigation costs can escalate is Egan v Motor Services (Bath) Ltd [2007] EWCA Civ 1002. This case involving the purchase of an Audi TT 3.2 litre V6 motor car which had an apparent defect.

Although various attempts to correct the defect were made, the purchaser remained dissatisfied. The parties' positions became entrenched and proceedings were commenced.

While the level of dispute was fairly modest - around £6,000 - the parties between them spent some £100,000 arguing over the claim.

Taking a case to trial can take months and involves considerable legal expense, in addition to indirect costs involved in having to spend time reading court documents, consulting lawyers and attending court.

By contrast, mediations are time-limited, meaning that costs are limited as well.

Two-thirds of mediations conducted through NFM settle, therefore, the potential cost savings outweigh the costs of using the legal process to resolve disputes.

Mediation fees are based on single claimant / defendant disputes and may depend on income, location and length of time necessary in order for an outcome to be achieved. If there is more than one claimant and/or defendant the length of the mediation session may need to be increased, and the next fee tariff applied - the mediation organisation or mediator will discuss this matter with you when organising the mediation.

If you are in receipt of public funding (legal aid) you may be able to claim reasonable costs of mediation. Either speak to your solicitor or the local Citizens Advice Bureau. You can use the Community Legal Service Direct online calculator to find out if you qualify for legal aid.