Lines open 8:30am - 6:00pm mon - fri
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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 showing 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, Helpline mediations are time-limited, meaning that costs are limited as well.
Two-thirds of mediations conducted through the Helpline settle, therefore, the potential cost savings outweigh the costs of using litigation to resolve disputes.
| Amount you are claiming | Fees (per party) |
Length of session | Extra hours (per party) |
|---|---|---|---|
| £5,000 or less* | £50 + VAT £100 + VAT |
1 hour Up to 2 hours |
£50 + VAT |
| £5,000 to £15,000 | £300 + VAT | Up to 3 hours | £85 + VAT |
| £15,000 - £50,000 ** | £425 + VAT | Up to 4 hours | £95 + VAT |
* The mediator/mediation provider should agree in advance whether this should be dealt with in one or two hours. For the one-hour rate the option is available to facilitate settlement over the telephone if appropriate, and if the parties agree.
** If the claim is for more than £50,000, the fees will need to be agreed with the organisation providing the mediation.
The above fees are based on single claimant / defendant disputes. 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.
LawWorks Mediation is an independent charity, offering free civil and commercial mediation to those unable to afford to pay for a commercial provider and without other means of paying. This service is available throughout England and Wales and is free to both parties if one party qualifies.
Where a claimant/defendant has demonstrated to the court that they are eligible for a fee remission in their current case, they will automatically be eligible for a free mediation. In other cases LawWorks will assess whether the applicant can afford to pay.
To access a free mediation through LawWorks, you must be in receipt of a means-tested benefit or your gross annual income is below a certain amount. Please tell the Helpline adviser if you think you may be eligible.
Fee remission: Her Majesty’s Court Service leaflet EX160A provides guidance on qualifying for fee remission.
Substantial counter-claims can push disputes from one cost band to another, for example an original claim for £4,000 but counter-claim for £30,000 makes an aggregate claim of £34,000.
The NMH fee is set according to the aggregate value, and parties will need to liaise amongst themselves if they are unhappy with this.
Claim £5,000 but counter-claim £20,000, then fee payable would be £850 + VAT (shared between parties)
The fee for the mediation should be paid once the date for the mediation has been arranged and/or the Agreement to Mediate has been signed.
If the mediation is cancelled by either or both of the parties, a cancellation fee will be charged as follows:
No cancellation fee will be charged if the mediation date simply has to be rescheduled to an alternative date.
If the mediation fee has already been paid by both/all parties at the time the mediation is cancelled, the mediator/mediation organisation will refund the mediation fee less any cancellation charge.
The cancellation date will be determined by the date when the mediator/mediation organisation is contacted by one party, or both or all parties, by either email or telephone.
If the cancellation of the mediation is agreed by both/all parties, the parties shall equally share the applicable cancellation payment. However, if the decision is made unilaterally, the party cancelling the mediation shall be liable for the whole cancellation payment.
Parties should try, where possible to provide a suitable venue for the mediation. If a venue has to be hired, the costs of the same are to be paid by the parties.
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: www.communitylegaladvice.org.uk/en/legalaid/calculator.jsp to find out if you qualify for legal aid.
If during a mediation it becomes apparent that the amount in dispute is higher than that originally discussed with either the NMH adviser or the mediation organisation allocated, and upon which the mediation fee invoiced by the mediation organisation was based; then the mediation organisation reserves the right to invoice the Parties for any additional amount that would have been due, in accordance with the published NMH fee scale.
