Mediation costs—liability and recovery
Mediation costs—liability and recovery

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Mediation costs—liability and recovery
  • What are mediation costs?
  • Costs budgets and recording mediation costs
  • Who pays mediation costs and when?
  • How are mediation fees set?
  • Mediation settles the dispute—costs recoverability
  • Mediation settles the dispute but not costs
  • No settlement at mediation (failed mediation)
  • Costs recoverability of a pre-action mediation
  • Refusing mediation—costs consequences
  • More...

This Practice Note considers who bears the liability for paying the costs of a mediation, what those costs may include, how they are set and how and when such costs may be recovered and by whom.

See also Q&A: What are the costs recovery provisions in relation to commercial mediations?

For guidance generally on mediation, see: Mediation—overview, and Practice Note: Court ADR schemes which covers ADR, including mediation schemes, in the courts.

For guidance generally on costs recoverability, see: Principles of costs recovery—overview.

What are mediation costs?

The likely costs of a mediation will include:

  1. the fees of the mediator

  2. venue hire and hosting (unless one of the parties makes available their offices to conduct the mediation although this is sometimes resisted on the basis that both parties prefer a ‘neutral’ venue)

  3. legal costs, ie those of the solicitor in preparing for the mediation which will include:

    1. preparing the mediation documents (such as the mediation agreement, opening statement, case summary, supporting documents)

    2. attendances on:

      1. the client, preparing them for the mediation

      2. the other party in convening and planning for the mediation

      3. others, such as counsel and/or experts, where their assistance may be required in producing the mediation documents and/or more generally preparing for the mediation

  4. on the day attendance costs, including travel to the venue

  5. any after the event costs, such as working to finalise and execute the settlement

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