'To Mediate Or Not To Mediate?' – That Is (No Longer) The Question!

With the Ministry of Justice making mediation compulsory for all civil claims up to £10,000 what does this mean for defendants and their insurers?

On 25^th July, the Ministry of Justice confirmed its commitment expressed earlier this year that mediation will become compulsory for all civil claims valued up to £10,000, without exception, with parties risking costs sanctions or strike out if they fail to engage in the dispute resolution process.

Whilst initially focusing on making the process mandatory for specified money claims during this Parliament, in due course, all small claims track matters will be in scope, and upon allocation will be referred to the small claims mediation service. If a settlement is agreed, a legally binding formal agreement will be registered with the court. If agreement is not reached, the dispute will be heard by a judge who may impose sanctions for previous non-co-operation.