What is Mediation?

Mediation is a form of alternative dispute resolution (ADR) where an independent, impartial mediator helps two parties in a dispute reach a mutually acceptable agreement. Unlike a judge, a mediator doesn't make a decision — they facilitate negotiation.

Mediation for unpaid invoices: When a client disputes an invoice or refuses to pay, mediation can be faster, cheaper, and less stressful than going to court. It's particularly useful when: - The debtor disputes the quality of work or the amount owed - You want to preserve the business relationship - The amount is too small to justify court costs - Both parties are willing to compromise

• **Free Small Claims Mediation Service:**
• For claims under £10,000 on the small claims track, HM Courts and Tribunals Service (HMCTS) offers a **free mediation service**. Key features:
• Conducted by **telephone** (typically a 1-hour session)
• Both parties speak to the mediator separately and together
• Completely voluntary: — both sides must agree to mediation
• If agreement is reached, it becomes **legally binding**
• If no agreement, you can still proceed to a court hearing

When the court expects mediation: Courts actively encourage mediation and may penalise parties who unreasonably refuse it. Since the 2026 late payment reforms, the Small Business Commissioner can also offer adjudication as an alternative to court.

• **Advantages over court:**
• Speed: Mediation can resolve disputes in days, not months
• Cost: Often free or low cost vs court fees and time spent
• Confidentiality: Mediation is private; court proceedings are public
• Control: Both parties have a say in the outcome
• Flexibility: The mediator can suggest creative solutions a court can't

Success rates: The Small Claims Mediation Service has a settlement rate of approximately 60-70%. Even when mediation doesn't reach full agreement, it often narrows the issues in dispute, making any subsequent court hearing shorter and simpler.