Civil justice reforms and the balance of power

Almost all mediations are strongly affected by cost considerations. Many are completely dominated by them. Costs are a crucial element in the weighing of risk and reward that parties are being asked to engage in at a mediation and mediation’s big attraction is often that it gives the parties the chance to settle and to “stop the clock”.

So it is unsurprising that the changing machinery for the incurring and recovering of legal costs in our civil procedure system is a matter of enormous interest, indeed concern, to the mediation community.

The Super-claimant

Mediators got used to working in the CFA/ATE universe. It had its problems but we got used to it. It was always difficult to negotiate with the “super-claimant” who had passed all the risks of defeat to a combination of his lawyers and his insurers. “Bill, what incentive do I have to settle for that?” such a Claimant would ask. “There is simply no down-side for me in fighting on.” The obligation to pay the lawyers and the ATE insurers (and often the funders too) might well mean that until a very substantial sum of money indeed had been tabled at a mediation, the super-claimant him- or herself was getting nothing.Continue Reading