Small Claim or Mediation?

6 May 2023

The merits of mediation!

What can be mediated?

Mediation is a fantastic form of dispute resolution for the right matters. We help many people who go through the small claims court in the UK but not all matters are suitable for mediation.

What makes a suitable matter for mediation? There are some critical elements to ensure that mediation is given the very best opportunity.


Parties (the people involved):

The people involved must all be contactable and agree to mediate (or explore this as an option). Where the other party (or parties) is/are not contactable or against the thought of talking with you, then mediation is unlikely to be unsuitable. If everyone is at least open to the possibility, our team can help you with the enquiry process and get everyone on board.


Matter:

The issues in dispute can potentially be resolved without someone making a decision - the length of time before you get to mediation may have an impact. This is because people get stuck in the way they think about things. It doesn't matter though, as we regularly talk to people who have spent months or years arguing with lawyers (and sometimes without) who are ready to bring the problem to an end. Mediation is suitable for 99 per cent of issues, and is used for matters between people (neighbours, family, workplace etc.) and where businesses are involved (whether with another business or with a consumer or worker).


Cost:

Mediation is a specialist service and you are paying for someone to help you resolve a matter swiftly. The issues may have a financial element or they may not. The cost of mediation with us will never be based on the value of the claim. We charge for the time spent and we work on a 2 hourly block basis. You will need to factor in other professional costs such as lawyers, advisors and other consultants. Your mediation may last a few hours or up to a day, and rarely, a few days. Do you want to save the cost of resolving your issues? Mediation may be a very good option for you. You'll pay for the mediator, and the cost is usually shared amongst the parties (the people involved).


Location:

Mediation is traditionally held in person at a venue of the parties' choosing. However, we're advocates for remote mediation because it makes the process more accessible, more cost effective and easier for people to resolve matters without sacrificing time off work or other commitments. If you choose remote mediation, this can be just as effective as in-person mediation and many of our members are trained in conducting mediations in this way.


Court process:

Judges are very supportive of mediation and other forms of Alternative Dispute Resolution (ADR). Your judge may order that mediation takes place or you may request that the proceedings are stayed (paused) to allow mediation to take place. The court will usually grant this and encourage it. If one or more parties do not want to participate, they will need to have a very good reason not to. Otherwise, the judge will take a very dim view of that decision and potentially add more costs, interest or sanctions.

If you are dealing with conflict or a formal dispute, 
talk to the team and we will help you navigate through the process. If mediation is suitable, we will talk to you about this and discuss your options.


Expert Advice

17 December 2024
Business Owner vs. National Retailer Introduction: Small business owner, Sarah, had been running her boutique clothing store for five years when she noticed that one of her designs was being sold at a national retail chain. After conducting further investigation, she discovered that the retailer had copied her design without permission and was making a significant profit from it. Feeling frustrated and violated, Sarah sought legal advice and was advised to take legal action against the retailer. Problem: Sarah faced two major obstacles in this situation - first, taking legal action would be time-consuming and expensive for her small business. Secondly, there was no guarantee that she would win the case and receive the compensation she deserved. On the other hand, the national retailer had a team of lawyers and could afford to prolong the legal battle. Solution: Instead of going straight to court, Sarah decided to try mediation as an alternative dispute resolution method. She reached out to a professional mediator who specialised in business disputes and explained her situation. The mediator suggested that they invite representatives from both parties for a mediation session. During the mediation session, Sarah presented her evidence and explained how the retailer had copied her design without permission or any form of compensation. The representatives from the retailer argued that they were not aware of Sarah's design and claimed that it was merely a coincidence. Outcome: Through effective communication facilitated by the mediator, Sarah and the retailer's representatives were able to understand each other's perspectives. The mediator also helped them identify the strengths and weaknesses of their cases. With the help of the mediator, a compromise was reached - the national retailer agreed to pay Sarah £75,000 in compensation for using her design without permission. In exchange, Sarah allowed them to continue selling the design with proper licensing and royalties. Benefits of Mediation: This successful mediation not only saved both parties time and money but also allowed them to maintain a positive business relationship. By avoiding a lengthy legal battle, they were able to focus on their businesses instead of being consumed by conflict. Moreover, through active listening and effective communication during the mediation session, both parties were able to understand each other's concerns and find a mutually beneficial solution. This helped them build trust and respect, which could have been damaged if they had gone to court. Conclusion: This case study highlights the effectiveness of mediation in resolving business disputes. It not only helps save time and money but also promotes better communication and understanding between conflicting parties. As a small business owner, Sarah was able to protect her rights and receive fair compensation without having to go through the stress of a legal battle. Mediation can be a powerful tool for SMEs in resolving conflicts and maintaining positive relationships with other businesses. So, it is important for business owners to consider this alternative method before resorting to legal action. As the saying goes, "a stitch in time saves nine," proactive early intervention through mediation can prevent conflicts from escalating and benefit all parties involved. Overall, mastering conflict resolution skills and using effective communication strategies can empower business owners to navigate disputes with confidence and care, leading to better outcomes for themselves and their businesses. In conclusion, resolving conflicts in business is not always easy, but it is essential for maintaining healthy relationships and promoting a positive working culture. Through mediation, active listening, crisis management techniques, and negotiation skills - business owners can effectively resolve disputes and turn them into opportunities for growth and collaboration. By learning from case studies of successful resolutions like Sarah's, SMEs can build a conflict-resilient culture and achieve long-term success in their industry. So, it is crucial to prioritize conflict resolution strategies and invest in building strong communication skills to navigate any legal disputes that may arise with confidence and care. Remember, effective conflict resolution is not about "winning" or "losing," but rather finding a solution that benefits all parties involved. Mediation provides a neutral ground for productive discussions and helps avoid the emotional and financial toll of going to court. With the increasing use of technology in modern dispute resolution, SMEs can now access mediation services remotely, making it even more convenient and cost-effective. In today's fast-paced business world, conflicts are inevitable. However, how we handle them can make all the difference. Mediation offers a collaborative and efficient way to resolve disputes, making it an essential tool for SMEs to have in their arsenal. By promoting understanding and finding win-win solutions, mediation can help businesses build stronger relationships and foster a positive environment for growth and success. So whether you are a small business owner or part of a larger corporation, consider mediation as your first course of action when faced with a potential legal dispute. It may just save you time, money, and unnecessary stress while also preserving important business relationships. As Sarah learned from her experience - mediation is not only about resolving conflicts but also about creating a win-win situation for all parties involved. So, embrace this conflict resolution method and watch your business thrive. Always remember that effective communication and collaboration can turn any conflict into an opportunity for growth and success. Empower yourself with the necessary skills and resources to handle conflicts in a proactive and positive manner, and you will be on your way to creating a healthier and more productive work environment for your business.
by Will Chalmers 3 December 2024
The Scenario: John had been renting an apartment from his landlord, Mr. Smith, for two years. However, in the last few months, John noticed mould and dampness starting to appear on the walls of his bedroom. Despite repeatedly bringing this issue to Mr. Smith's attention, no significant action was taken to address it. Frustrated with the lack of response and increasing health concerns caused by the mould, John decided to withhold rent until the issue was resolved. This led to a heated argument between John and Mr. Smith, with both parties unwilling to budge from their respective positions. The Conflict: John felt that he was entitled to a habitable living space, and the presence of mould and dampness was a breach of his rights as a tenant. On the other hand, Mr. Smith argued that John's negligence in maintaining proper ventilation and reporting the issue promptly led to the growth of mould. The conflict escalated quickly, with John threatening to move out and Mr. Smith considering legal action for unpaid rent. The Mediation Process: At this point, both parties decided to seek mediation services before taking any further action. A mediator was appointed, and both John and Mr. Smith were given an opportunity to express their concerns in a neutral setting. The mediator helped facilitate communication between John and Mr. Smith, allowing them to understand each other's perspectives and come up with a mutually agreeable solution. Through open dialogue, it became clear that the root cause of the mould issue was a combination of poor ventilation in the apartment and John's failure to report it promptly. The Outcome: With the help of mediation, John and Mr. Smith were able to reach a resolution that benefited both parties. Mr. Smith agreed to hire professionals to fix the ventilation system and address the mould issue, while John agreed to take responsibility for maintaining proper ventilation in his apartment. Additionally, an agreement was made for John to pay reduced rent until the issue was fully resolved, and he would receive compensation for any expenses incurred due to the mould. Conclusion: Thanks to mediation, John and Mr. Smith were able to resolve their dispute amicably and find a solution that worked for both of them. The mediator helped facilitate open communication, understanding, and collaboration between the landlord and tenant, allowing them to address the root cause of their conflict and find a mutually beneficial resolution. This successful outcome highlights the benefits of using mediation in landlord-tenant disputes. It not only helps resolve immediate conflicts but also promotes better communication and prevents future issues from arising. In this case, mediation was a cost-effective and efficient way to address the issue without resorting to expensive legal proceedings or damaging the landlord-tenant relationship. So, it is always worth considering mediation as a first step in resolving any disputes between landlords and tenants. After all, finding a mutually beneficial solution is more valuable than winning an argument. Need help with your Landlord and Tenant issues? Contact us by calling 03300 431 757 or via help@disputeresolutionagency.com or check out our Housing Resolution page for more information .
by Will Chalmers 13 November 2024
The Scenario: Samantha had been working as a sales executive at a multinational company for five years. She was an efficient and dedicated employee who always met her targets and received positive feedback from clients. However, Samantha felt that she was being treated unfairly by her line manager, Mr. Smith. She noticed that her male colleagues were receiving higher salaries despite having similar job roles and responsibilities. Feeling frustrated and undervalued, Samantha decided to confront Mr. Smith about the pay disparity.  However, instead of addressing the issue, Mr. Smith dismissed her concerns and told her to focus on her work instead of worrying about other employees' salaries. This response only added to Samantha's frustration, and she began to feel demotivated and unappreciated. The Conflict: Samantha felt that Mr. Smith's dismissive attitude was a form of discrimination, and her repeated attempts to address the issue were being ignored. She also noticed instances where Mr. Smith would give preferential treatment to male colleagues, such as assigning them high-profile projects or allowing them more flexibility with their schedules. Samantha decided it was time to take action and considered submitting a formal grievance against Mr. Smith for unfair treatment and gender-based pay discrimination. However, before taking any legal action, she reached out to the company's HR department for mediation services. The Mediation Process: A trained mediator was assigned to Samantha's case, and both parties were given the opportunity to express their concerns in a safe and neutral environment. The mediator helped facilitate open and honest communication between Samantha and Mr. Smith, allowing them to understand each other's perspectives. While Mr. Smith initially denied any discrimination or unfair treatment, the mediator encouraged him to listen actively and consider the impact of his actions on Samantha's morale and job satisfaction. Through effective communication techniques, the mediator helped both parties identify the root cause of their conflict – lack of transparency in salary negotiations and unconscious bias towards gender roles. The Outcome: With the help of mediation, Samantha and Mr. Smith were able to reach a mutually beneficial agreement. Samantha was given a raise to match her male colleagues' salary, and she was also allowed more flexibility in her schedule to balance her work and personal life. In return, Samantha agreed to take on additional responsibilities and actively participate in the company's gender equality initiatives. The mediation process not only helped resolve the immediate conflict between Samantha and Mr. Smith but also promoted better understanding and communication within the workplace. It created a win-win situation for both parties by addressing the underlying issues and finding a solution that benefited everyone involved. Conclusion: Samantha's case is an excellent example of how mediation can effectively resolve workplace conflicts without resorting to formal grievances or legal action. By providing a safe and neutral space for dialogue, mediation can help parties understand each other's perspectives and find common ground for resolving disputes. In this case, Samantha was able to secure fair treatment and equal pay, while Mr. Smith learned the importance of transparency and unbiased decision-making in the workplace. This successful outcome highlights the benefits of utilising mediation in business settings, especially for small and medium-sized enterprises. By promoting open communication, understanding, and collaboration, mediation can foster a positive work environment that supports growth and success for both employees and the company as a whole. So next time your SME is faced with a workplace dispute, consider mediation as an effective way to resolve conflicts and preserve valuable relationships within your organisation. Need help with your workplace conflict or dispute? Contact us on 03300 431 757 or by email via help@disputeresolutionagency.com or check out our page on workplace mediation .
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