THE COSTS OF MEDIATION AND THE COSTS BUDGET: AVOIDING A POSSIBLE TRAP
I am grateful to Alan Mendham for writing to point out a possible trap in relation to costs budgeting and mediation.
Alan points out that disputes can arise as to whether mediation is included in the phase for settlement or not. If any form of mediation is anticipated it is outside the settlement phase of the budget and should be included as a contingency. There is a danger in assuming that mediation is covered by the general settlement phase in the costs budget.
Annex B is a useful guide and is one of those documents it helps to have to hand at every costs budgeting hearing. The annex is clear as to what is not covered in relation to settlement. Under the category of what the budget “Does NOT include” and in the section on settlement it clearly states
“Mediation (should be included as a contingency).”