Costs of Mediation
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  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, mediations are time-limited, meaning that costs are limited as well, therefore, the potential cost savings outweigh the costs of using litigation to resolve disputes.
|Amount you are claiming||Fees |
|Length of session||Extra hours |
|£5,000 or less*||£50 + VAT
£100 + VAT
Up to 2 hours
|£50 + VAT|
|£5,000 to £15,000||£300 + VAT||Up to 3 hours||£85 + VAT|
|£15,000 - £50,000 **||£500 + VAT||Up to 4 hours||£95 + VAT|
* If the option is available to mediate over the telephone if appropriate and if the parties agree, for claims valued of up to £10,000.
If your dispute is worth less than £10,000 you will be able to access the county courts in house small claims mediation service. However in order to do so it will be necessary for you to issue proceedings. Although there is no direct charge for the court this service itself, you will have paid a court fee to access it.
** If the claim is for more than £50,000, the fees will need to be agreed with the mediation provider.
If it is necessary for a venue to be sourced by the NMPA provider then the costs of the venue and any refreshments will be in addition to the mediation fee and payable by the parties.
The above fees are based on a two party mediation. If there are more than two parties, the length of the mediation session may need to be increased, and the next fee tariff applied - the mediation provider or mediator will discuss this matter with you when organising the mediation.