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Launch Of National Mediation Helpline |
People with personal injury, small claims, business and consumer disputes will be able to get information and advice on how mediation can help solve their problem from a new National Mediation Helpline (NMH) pilot scheme launched by Civil Justice Minister David Lammy today.
A local rate telephone line - 0845 60 30 809 - will help callers to identify an effective means to resolve their difficulty in a wide range of civil disputes without going to court.
The Helpline service can arrange mediation appointments with an accredited independent mediator so that people across England and Wales can settle disputes quickly and easily.
David Lammy said:
"Mediation provides an alternative way of resolving disputes which can be simpler, cheaper, quicker and less stressful that going to court.
It can also get results that you would not get by going to court, such as an explanation or an apology, which often do a great deal to make settlements more acceptable to aggrieved parties.
"Many people who end up in court are not aware of mediation or its advantages. The National Mediation Helpline will give people the information they need to be able to settle their dispute out of court."
The NMH has been testing its systems ahead of the national launch since the end of November last year. There have been more than 300 calls to the helpline, most of which have been for information and advice.
So far four mediations have taken place as a result of these calls, all of which settled at mediation.
These mediations were set up within an average of 2 - 3 weeks of the caller contacting the helpline. That compares with the several months a court hearing might have taken to arrange, with additional cost and in some cases distress.
The NMH is initially a one year pilot scheme established by DCA and the Civil Mediation Council (CMC), which was set up last year by academics, professions and providers in the field of civil mediation to encourage mediation as a way to settle disputes.
Harry Hodgkin from the CMC said:
"This is a wonderful opportunity to introduce litigants and indeed members of the public generally to the considerable benefits of using mediation to resolve a range of disputes by way of a 'one for all' phone number fully supported by a number of leading providers"
The NMH will refer callers to a mediation provider who will arrange an appointment with a trained and accredited independent mediator.
If both sides agree to come to mediation, the mediator will meet with both of them separately, and together, to discuss the issues involved.
The mediator will identify the main issues and help both sides to settle the dispute. Results of mediation could include: compensation; a refund; an apology; an explanation; replacing goods; or a change in policy or behaviour. If agreement cannot be reached through mediation the complainant still has the option of going to court.
Joining David Lammy and Harry Hodgkin at the Royal Courts of Justice to launch the helpline were Professor Martin Partington, Chairman of the ADR Committee of the Civil Justice Council; Lord Justice Dyson; Sir Brian Neill, Chair of the Civil Mediation Council and Duncan Roy, a trained mediator.
The costs of mediation depend on the value of the dispute:
* Small claims under £5000 cost £250* (£125 per party) for 2hrs of mediation
* Fast track claims £5,000 - £15000 cost £500* (£250 per party) for 3hrs of mediation
* Multi-track claims £15k - £50,000 cost £750* (£375 per party) - for 4hrs of mediation
*Fees are shared by both parties and exclude VAT at 17.5%
If the value of the claim exceeds £50,000 the charges will need to be agreed with the mediation provider. Parties in receipt of public funding (formerly legal aid) may be able to claim reasonable costs of mediation.
County courts will send out information about the NMH at an early stage of making a claim (with allocation questionnaires). They will also display posters and leaflets publicising the NMH in public areas.
The current mediation providers assisting the scheme are: The Academy of Experts, Alternative Dispute Resolution Chambers UK, Alternative Dispute Resolution Group, Centre for Effective Dispute Resolution, The Chartered Institute of Arbitrators and In Place of Strife.
Two cases studies from recent mediations are attached as examples of successful interventions and the claimant's positive view of mediation solutions.
Mediation Council contact is Harry Hodgkin on 0845 083 3000.
National Mediation Helpline Case Studies
Household dispute with builder
The householder had agreed a contract with a local builder to covert the cellar into a basement flat with separate entrance.
The householder had paid the quotation for the work but the builder had not completed works. The householder decided to sue for £14,000 plus legal costs.
The householder took his case to Cheltenham County Court Office, which recommended that he approach the National Mediation Helpline (NMH) to try and settle the dispute through mediation and thus avoid the costs of appearing in court.
NMH suggested the two parties go to the Cedr Mediation Company, who set up a meeting within seven days (two-weeks before the scheduled date of the trial).
The two sides came to an agreement at the first mediation meeting. Agreement was reached on a settlement covering the incomplete building works, but at a much lower rate than the full claim to the court, which would have considered reported evidence, receipts, contracts and quotes. Agreement was also reached that the damages were to be paid over a very long period.
The Householder said:
"Maybe in court the Judge would have ruled better. However, I was told of the defendant's financial position but had not been shown or asked for the full evidence in the mediation. This resulted in the payout being agreed over a long period.
"The Mediator was friendly and professional throughout. However, he was reluctant to offer advice as to how the case would stand or fare in court. The period of mediation discussion was long and extremely intense and pressurising throughout for everyone."
The costs of resolving the dispute amounted to £311, including petrol, parking, time off work etc. It was also concluded only eight days after the claim was presented in court.
Dispute over invoice worth £4,000
The claimant approached the NMH after receiving information about it with the court papers. He did not think the sum involved was large enough to justify going to court.
He said:
"It was a trivial matter and it was not worth going to Court. The helpline provided a mediator, who was good and quick and helped get the solution I wanted. The mediation was successful, I received a refund and an apology."
The mediation cost £125 plus VAT and took about 10 days to resolve after first approaching the NMH. The claimant said he would use mediation again, but would have liked more help in preparing his case for mediation.
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