When working out how much it will cost to deal with a problem, you need to take into account:
- fees or charges for the alternative dispute resolution service (if it is not free);
- your own expenses, including things like travel and photocopying;
- the cost of legal help and advice; and
- the risk of you not getting what you want.
For example, you need to know if you will be responsible for paying the other side's legal fees and other expenses if you lose. And you need to know if you can expect to get your costs and expenses paid if you win.
The principle that applies in UK courts is generally that the 'loser' pays the other side's costs as well as their own. However, in alternative dispute resolution, the general principle is that each side pays their own costs.
You should aslo be aware that if you refuse to consider a form of alternative dispute resolution before or during litigation, then you may even have to pay the other sides costs, even if you win.
Mediation costs can vary, depending on the type of mediation. For example:
- community mediation is usually free to local residents;
- family mediation services often charge an hourly rate. Some have a scale of fees, so what you pay depends on how much money you have. You may be able to get help with the costs of family mediation through the Community Legal Service; and
- commercial mediation providers make a charge depending on the complexity and value of the claim.
Sometimes, the organisation you are complaining about might pay all the costs because they are the financially-stronger side.
Most consumer arbitration schemes run by the Chartered Institute of Arbitrators cost between £10 and £100, but some are free. And if you win your case, you will get back any fee you have paid.
Ombudsmen services are free but the organisation you are complaining about may have to pay a fee to be a member of the ombudsman scheme.
Expenses
You may have to pay for travel expenses, childcare costs, and time off work if you have to go to a hearing. Photocopying evidence can be expensive, so don't forget this cost if you are using a process such as arbitration that relies on you providing many documents.
Ombudsman schemes tend to be the least expensive to use. Community mediation doesn't cost much either. It usually involves face-to-face meetings, so you may have to pay travel and other expenses, but you may be able to get these back as part of a mediated agreement if both sides agree to this.
Can I get help with the costs?
You may be able to get help with the costs of using an alternative dispute resolution scheme through the Community Legal Service. This will depend on whether you cannot afford to pay and if you meet other conditions. If you meet these conditions, you may get help with:
the costs of preparing your case for mediation, early neutral evaluation or arbitration;
in some cases, paying for an adviser to go to mediation; and
the fee for mediation, early neutral evaluation or arbitration.
