Commercial and Marine

Civil Procedure Rules (CPR)

Compulsory mediation

Why mediation first?

What is the Small Claims Fixed Fee Scheme?

Civil Procedure Rules (CPR)

Part 36 Offers to Settle and Overriding Objective of the Civil Procedure Rules (CPR) The overriding objective of the Civil Procedure Rules (the procedural code to which legal proceedings should adhere) is to ensure that access to justice is improved by making proceedings cheaper, quicker and easier for non-lawyers to understand.

As part of the rules, participants are encouraged to utilise ‘alternative’ forms of dispute resolution or ADR (now simply referred to as Dispute Resolution or DR). Mediation is the most commonly utilised form of DR and is becoming more and more popular as litigants and their legal advisers recognise the benefits.

Compulsory mediation

In 2021 Lord Chief Sir Geoffrey Vos, head of the Justice System and Master of the Rolls, made a very clear direction to those active within the justice system to embrace ADR and mediation in particular. In an attempt to modernise processes and procedures and fully embrace dispute resolution, Sir Geoffrey has not only given the green light to compulsory mediation schemes throughout the UK, but called for the ‘Alternative’ in ADR/ Alternative Dispute Resolution to be removed completely, to ensure that ‘other’ less formal methods of resolving disputes are used by those involved in disputes.

Although Lord Vos' work kas taken slightly longer than expected to have an impect, it no doubt paved the way for the decision in Churchill -v- Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416 and other cases which direct participants to consider ADR before court proceedings. Mediation is now very much fully integrated into the legal system, will mean that it is
more accessible to those who may not have known much about it before.

This truly is a milestone in legal history and one that will ensure that future generations will come to understand that a less stressful, less expensive and less draconian option is available. These are the principles upon which Latitude Mediation was established. In our view, mediation can and should be used in most disputes and the move to ‘Compulsory Mediation’ is the right one (this is particularly true in the current climate where the COVID backlog is still causing significant delays).

Did you know that 85-95% of cases settle during mediation or shortly thereafter!

What does compulsory mediation mean for you?

As a result of this new direction, it is very likely that parties progressing through formal legal proceedings will be directed to mediation at the initial stages. It is therefore very worthwhile attending mediation before initiating a claim, in order to save additional associated costs, and to ensure that formal proceedings are progressed swiftly, if necessary.

Why mediation first?

Litigation and other formal dispute channels have always carried risk and cost for the parties involved. Even seasoned lawyers will these days recognise that litigation is really to be the course of last resort, with mediation widely regarded as the leading alternative dispute resolution approach.

The implementation of the Civil Procedure Rules (CPR) in 1998 emphasised the need for cases to be actively managed, to ensure they were dealt with justly, equitably and fairly and that costs incurred were proportionate. The overriding objective of the CPR remains “to improve access to justice by making legal proceedings cheaper, quicker, and easier to understand for non-lawyers”.

Commercial mediation was then firmly placed as a central feature of the ‘new’ civil litigation landscape (see for example Dunnett v Railtrack (2002)).

What is the Small Claims Fixed Fee Scheme?

Latitude Mediation understands how important it is for participants to stay in control of the financial aspects of the process. As such we operate on a fixed fee basis, with all reasonable preparatory and administrative work included.

We are confident that we offer a competitive pricing policy and each quotation will be bespoke to your requirements. We are very happy to discuss a potential mediation with you and agree a bespoke pricing package and plan, and some pricing guidelines are set out below for ease.

Latitude Mediation continues to comply with the Civil Mediation Council small claims fixed fee scheme, ensuring that we provide exceptional support at a very reasonable price point. Accordingly, our fees for civil and commercial mediations, based on two participants:

Amount being claimed	Fees per party	Length of session
Less than £5000*	£75– £125	1.5-2 hours (Virtual)
£5,000 to £14,999 *	£320	Up to 3 hours
£15,000 to £49,999	£445	Up to 4 hours
£50,000 -£250,000	£750 – £2,500	Full day
£250,000 and above	POA	Please email info@latitudemediation.co.uk

We do not charge for any preliminary communications or administrative work and where possible we will include travel fees in our fixed fee. Please  email us  directly if you would like further information.

*Please note that if your claim is less than £10,000 and proceedings have already been commenced (and a claim form issued), you may be offered a free 1 hour telephone mediation through the courts .

Commercial Mediation FAQ

When can you mediate?

Mediation is available at any stage either prior to the commencement of formal legal proceedings or indeed at any time up until the final hearing if formal proceedings have already been issued.
Is mediation suitable?

Mediation is not suitable if the contact details of the other participant are unknown, if the other participant does not wish to mediate or if the other participant is unlikely to be able to pay under a settlement agreement, even if it is agreed that the monies are owed.

It is always preferable for both participants to be engaged with the mediator from the outset and so a joint agreement to mediate at the earliest opportunity is strongly encouraged.
Who can attend the mediation?

Besides the participants themselves, mediations can also be attended by their representatives, such as lawyers, consultants, and experts (that is to say, if the participants have them, which will not always be the case). All persons attending the Mediation will sign a confidentiality agreement, and be bound by the Latitude Mediation Rules for the Mediation.
How do we prepare for mediation?

The participants’ agreed mediation format may involve themselves or their representatives preparing some documents in advance of the mediation, to assist the mediator’s understanding of the issues at large.

Such documents might include evidence relied on, any pleadings already prepared during legal proceedings, or simply a short summary from the participants. There is nothing further that needs to be done other than to attend at the pre-agreed time, date and venue.
Will I be in a room with the other participant(s)?

At the current time, we are finding that shorter mediations are being conducted online, but full day mediations are often in person. There is no ‘right’ or ‘wrong’ format though; each mediation must be appropriate for its participants.

On mediation day there isn’t, nor is there really designed to be, a strict formula for how the mediation progresses; it is a deliberately dynamic process, for optimum effectiveness. The mediator will of course provide direction and the participants are free to break as they wish.
How long does the mediation last?

Much will depend on the complexity and value of dispute and number of attendees. The CMC fixed fee scheme (see below) has nicely compartmentalised types of mediations and we most often adhere to this ‘formula’.

Online Dispute Resolution has proven very effective in providing parties with greater flexibility in the timings during the mediation. Nowadays, many matters benefit from a short preliminary (online) meeting with the mediator prior to the mediation.
What happens if the matter settles?

The participants control all elements of the eventual settlement agreement; a signed document capturing how the matter(s) in dispute is to be resolved by reference to various assurances, promises, actions, undertakings, and so on. Upon reaching and signing a final agreement, formal proceedings will be discontinued and the parties are free to move forwards.

If a full settlement does not transpire from the participants’ efforts to mediate, the mediation should still be expected to help narrow, dilute or dispense with some aspects of the matter(s) in dispute. In this way mediation will mitigate/ reduce the ongoing cost of any formal proceedings, which will recommence in the event that settlement efforts are not successful.

Why Latitude Mediation?

We have hand-picked some of the best mediators in the UK to work with us and we guarantee that we can find the right mediator for your dispute. There are never two cases or clients that are the same and so we will ensure that each mediation is bespoke to the client’s needs, particularly as very often ‘other’ points can be discussed and taken into consideration.

As such, we do not like to pigeon-hole disputes, but if helpful, see below a non-exhaustive list of the types of disputes that Latitude Mediation can support: