Four hour mediations – the quick solution?
The classic commercial mediation “model” involves bringing the parties together for a full day (seven or eight hours). This can be extended if the parties have not quite concluded their deal by the end of that time … assuming the rooms and other facilities are still available.
But there are concerns that this model is not the most cost-effective. Parkinson’s Law dictates that when eight hours are set aside, (at least) eight hours will be used. Parties delay their opening offers, hoping the other will move first.
But for monetary claims, with less emotion involved, the four-hour, or time-limited mediation is really useful.
Fixed Recoverable Costs
And it is likely to be popular for claims under the Fixed Recoverable Costs scheme. Here the scales limit the amount that can be recovered in relation to the mediator's cost to £1,200 plus VAT. The allowable costs for the lawyers depend on the scale but vary between £1,400 to £2,300 plus VAT.
Why does time limited mediation work?
It is noteworthy that in the workplace mediations three to four hours is about as much as an unsupported individual can manage at any one time.
Concentration wanes.
The four hour limit provides a focus.
Morning or afternoon? Well, opinions vary. Parties tend to be fresher in the mornings but can that energy be channelled into the deal or does it inflame the emotions? A morning mediation could allow a flexible extension into the afternoon but does this remove the pressure of the limited time?
With increasing pressure on costs and with greater integration of mediation into the court process, I think these will become more common.
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