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Mandatory arbitration for small claims? Any experience?

5 replies

DecisionTime123 · 12/10/2026 12:16

I'm reading up on the current small claims court process and I keep seeing that you must agree to arbitration of some sort regardless of the amount involved - is this true and has anyone been through the process? Was it helpful and professionally conducted?

OP posts:
prh47bridge · 12/10/2026 19:40

Arbitration is not mandatory. Mediation is mandatory for most cases. It is an opportunity for both sides to negotiate an agreement without going to court. However, you don't have to settle and the mediator doesn't make any decisions. They simply try to help you reach an agreement.

NotALotOfUse · 12/10/2026 19:43

Been through mediation recently. As the defendant. Mediator calls both parties separately so you don’t hear what the other party is saying and there is no direct discussion between the parties. I had a statement ready to read out, basically the entire claim was disputed so we did not mediate. Which was fine and I successfully defended the entire claim in court a couple of months later.

DecisionTime123 · 12/10/2026 20:06

I think I used the wrong wording, so yes, mediation. I'm the defendant, I think the mediation process will put the other person off going ahead but as you say @NotALotOfUse the other party in my case won't be willing to budge so can they just say no point not doing it? And if the mediator doesn't encourage settlement either way what do they actually say during the call?

OP posts:
prh47bridge · 12/10/2026 20:50

They can refuse to attend mediation, but an unjustified refusal can be penalised by the court. They court could, for example, strike out their claim. I'm not saying they will definitely be penalised, but it is possible.

The mediation takes the form of shuttle mediation, where the mediator speaks to each party in turn. They relay settlement offers, clarify each party's position and help the parties to find common ground, if possible. They do not give legal advice, make any decisions about the case or force anyone to settle.

NotALotOfUse · 12/10/2026 20:51

You have to be seen to be reasonable, so agree to the appointment. I knew it would be a waste of time so treated it as a tick box exercise. The mediator didn’t try to persuade any settlement as the prepared statement basically repeated my stance on the matter.

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