New Court Fees - Mediation Takes Centre Stage?

Today, 9th March 2015, could mark the beginning of the end of the litigious approach to the resolution of disputes.

Court Fees for the issuing of claims over £10,000 have dramatically increased as of this morning. Despite widespread concern from Barristers and Solicitors and a Pre-Action Protocol Letter from the Law Society and the Bar Council  warning of an application for a Judicial Review of the Ministry of Justice’s decision, Court fees have increased to 5% of claim value up to a maximum of £10,000. The old fees ranged on a scale from £610 to £1,920 - so the increase is very significant.

These increases mark a watershed moment for potential parties to litigation – it is not right to say the pressure is now all on the Claimant to meet these costs because Defendants should have at least one eye on the increased costs for which they could be liable in the event of a costs order against them. If there are to be any tears shed they are likely to be those of litigants who have from today onwards pre-emptively and disproportionately commenced legal proceedings without first exploring a pre-action resolution. Given the new Court Fees the ‘old’ and ‘cheaper’ system is now water under the bridge and the new regime must be seen as the Ministry of Justice’s biggest hint yet that those considering taking a dispute through the Courts will do so at even greater risk than in the past.

In Place of Strife passionately believes that any dispute can be successfully resolved in mediation and given the new Court Fees parties should engage in mediation before formal proceedings are commenced.

The advantage to all parties in seeking a pre-action settlement of disputes is that costs are kept to a minimum (including not incurring payment or liability for the new Court Fees) and positions may not be as entrenched as they may become later down the road to Trial.

Mediation is without doubt the future of dispute resolution and if the parties can be assisted in the settlement of their disputes before recourse to the Court system occurs, thereby minimising cost exposure, lost management time and risk, then today’s significant increase in Court Fees will have had a positive result.

Oliver Richbell