Starting Arbitration or Mediation
How to resolve disputes through arbitration or mediation without going to court.
Overview
Arbitration and mediation are forms of Alternative Dispute Resolution (ADR) that can be faster, cheaper, and more private than court proceedings. Arbitration produces a binding decision (an award); mediation helps parties reach their own settlement with the help of a neutral mediator. Many commercial contracts contain arbitration clauses requiring disputes to be resolved this way.
Who Can Use This Process
- You are likely eligible to use this guide if your situation involves starting arbitration or mediation.
- You have a genuine legal basis for the matter (contract, tort, statutory right, etc.).
- You have made reasonable attempts to resolve the matter directly with the other party first.
Step-by-Step Process
Check for an ADR Clause
Review your contract to see if it contains an arbitration clause or mediation agreement. If it does, you may be required to use ADR before (or instead of) going to court. Even without a clause, you can agree to ADR at any time.
- Courts encourage ADR — unreasonable refusal to mediate can result in adverse costs orders
Choose a Provider
Select an arbitration institution (e.g., LCIA, ICC, CIArb) or a mediation provider (e.g., CEDR, CIArb). For lower-value disputes, consider small claims mediation (free through the court service).
- Consider the provider's rules, fees, and the expertise of their panel
Notify the Other Party
Send a written notice to the other party proposing ADR. For arbitration, this usually means serving a Notice of Arbitration. For mediation, write proposing mediation and suggesting providers and dates.
Appoint an Arbitrator or Mediator
In arbitration, the tribunal is usually one or three arbitrators, appointed by agreement or by the institution. In mediation, the parties jointly select a mediator. The mediator is neutral and does not impose a decision.
The Process
Arbitration follows a procedure similar to court (statements of case, evidence, hearing, award). Mediation is more flexible — typically a one-day meeting where the mediator facilitates negotiation through joint sessions and private meetings ('caucuses').
Outcome
An arbitration award is legally binding and enforceable like a court judgment (under the Arbitration Act 1996). A mediation settlement is binding only if the parties sign a settlement agreement. If mediation fails, you can still go to court or arbitration.
Costs
Important Warnings
An arbitration award is final — rights of appeal are very limited under the Arbitration Act 1996.
Mediation is voluntary — either party can walk away at any time (but courts may penalise unreasonable refusal).
Ensure any settlement agreement is properly drafted and signed by both parties.
Useful Links
Frequently asked questions
- How long does the starting arbitration or mediation process take?
- The end-to-end timeline depends on which stage you're at. Common steps run on these timeframes: "Mediation: 1 day. Arbitration: 3–12 months.". Add court / counterparty response time on top — disputed matters can run months longer than the bare minimum.
- How much does it cost?
- Main outlays are: Mediation (CEDR) — From £1,500 + VAT per party per day; Small claims mediation (court) — Free; Arbitration — Varies widely — £5,000 to £100,000+ depending on complexity. Court fees often qualify for Help with Fees remission if you're on a low income. Solicitor fees are extra and vary widely — many matters can be done as a litigant in person.
- What are the most common mistakes to avoid?
- Watch out for: An arbitration award is final — rights of appeal are very limited under the Arbitration Act 1996.; Mediation is voluntary — either party can walk away at any time (but courts may penalise unreasonable refusal).; Ensure any settlement agreement is properly drafted and signed by both parties.. If you're unsure on any of these, get advice from a regulated solicitor or a free service like Citizens Advice before acting.
- Where can I find the official forms and guidance?
- The official sources are: CEDR — Centre for Effective Dispute Resolution; CIArb — Chartered Institute of Arbitrators. Always use the forms / guidance from the issuing authority's own site — third-party copies can be out of date.
- Can I do this myself without a solicitor?
- Yes — many people complete this kind of matter as a litigant in person. The site walks through each step in plain English. A solicitor is recommended if: large sums are at stake, the other side has legal representation, the matter involves criminal liability, children, immigration, or you're unsure on any procedural deadline. Free advice is available from Citizens Advice, Law Centres, and (for some matters) LawWorks pro bono clinics.