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Mediation by telephone aims to speed up claims

Ministry of Justice plans to take 80,000 cases a year out of court.
by Panos Papakostis | 17th Feb 2012
More neighborhood disputes and rows over debt will be diverted into mediation over the phone to speed up small claims cases and avoid the expense of going to court. Around 80,000 cases a year will be taken out of county court hearings, according to the Ministry of Justice's programme to reform the civil courts and introduce "cheaper, quicker" and more accessible settlements.

All small claims will automatically be referred to a telephone-based service, although mediation will not be mandatory and unsettled cases may eventually proceed to trial. The government plan unveiled today are in response to a public consultation on improving the way civil courts in England and Wales process the 1.5m disputes they receive each year.

Although almost 80% of respondents were in favour of offering telephone mediation, many of those opposed were from the legal profession, including judges. The official ministry response noted that: "Six out of the seven judicial responses were firmly against the proposals, with most of their comments focusing on the use of telephone hearings.

"The biggest concern amongst the judiciary was that telephone hearings would significantly reduce the judge's ability to control and observe the parties/witnesses properly during the hearing."

Recommending the changes, the justice secretary, Ken Clarke, mentioned: "Without effective civil justice, businesses couldn't trade, individuals couldn't enforce their rights, and government couldn't fulfill its duties."

The mediation service has an accredited mediator speaking to both parties, usually by telephone, in an effort to settle the case. Mediation can take five and six weeks to arrange, compared with 13 to 14 weeks for a court hearing, the ministry said, with satisfaction rates for existing mediation services at 95%.

Other changes include:
  • An increase in the small claims limit from £5,000 to £10,000, with a possible further increase to £15,000 following a fresh consultation.
  • Non-personal injury claims for between £25,000 and £100,000 will no longer be heard in the high court, which will be reserved for "necessarily complex cases".
  • Equity cases will only be referred there if the value exceeds £350,000, rather than £30,000 as at present, to reflect the rise in house prices since the level was last set in 1981, the ministry said.

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News story adapted from The Guardian, available at : http://www.guardian.co.uk/law/2012/feb/09/small-claims-cases-mediation-ministry-of-justice
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