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A step closer to compulsory mediation?

What goes through your mind when having to consider (or to defend) litigation that will involve court intervention? Frustration, demands on your time, delays in the process, or merely the uncertainty of a positive decision at court. Arguably, the core consideration must be costs, both your own and the exposure to an award against you to pay your opponents’ costs.

For those who recover their costs, litigation will feel like you have accomplished something. However, if there is a partial (or no recovery) then you can often feel hard done by.

From 1 October 2023, fixed recoverable costs will be extended across the ‘fast track’ and in a new ‘intermediate track’ for simpler cases valued up to £100,000 in damages. This means there will be a limitation on the level of costs you may recover. Whilst there are some exceptions to this, in general, cost recoverability becomes an important subject when considering the prospect of litigation.

At PBC, we believe this is another move by the Ministry of Justice towards encouraging alternative dispute resolution (“ADR”) or even the suggestion of compulsory mediation.

Mediation is a recognised form of ADR and is usually at a fixed cost, payable in equal share by the litigating parties. It is far quicker than the court process and provides the parties with an opportunity to settle their differences via the mutually agreed appointed mediator.

CEDR accredited mediator Gary Pettit of PBC said,

“All too often I discover the litigating parties are not that far apart in their thinking and sometimes they want the same thing but have simply not listened to one another.

Mediation is an opportunity to resolve a dispute more quickly and at less risk. Occasionally, no settlement can be reached, but I have known others to settle shortly afterwards, following both sides having had the opportunity to think a little more about the argument(s) and the commerciality of an early resolution.”

If you require any advice or assistance on a corporate or insolvency-related mediation, or any other insolvency-related issue, then please contact PBC Business Recovery & Insolvency to discuss and advise on your situation on 01604 212150 (Northampton), 01908 488653 (Milton Keynes) or email to Alternatively, visit for further information.