Mandatory mediation has been a reality in Small Claims in England and Wales since 22 May 2024. However, cases within the Online Civil Money Claims (OCMC) process were initially excluded and, even when the pilot was extended to OCMC claims under £10,000, RTAs were initially excluded.

Now, however, the Ministry of Justice has announced that low-value Road Traffic Accident (RTA) claims will be subject to the same compulsory Alternative Dispute Resolution (ADR) process as other OCMC claims. Only RTAs involving an element of personal injury will be exempt. The one-year pilot will, however, apply to credit-hire claims.

The Civil Procedure Rule Committee is running a public consultation on these changes, but concerns have already been raised by legal professionals about whether credit hire claims - in which liability and quantum issues are often complex - are suitable for mandatory mediation. Opponents point out that mediation has historically not been cost-effective for insurers.

There are also questions as to whether there is sufficient expertise to cope with what is sure to be a significant expansion in mediation. It is certainly true that RTA cases take up a not inconsiderable amount of court time (as Birss LJ acknowledged in Tescher v DAMS - the recent bombshell ruling on costs in credit hire claims). However, ADR can obviously only ease the strain on courts if the expertise exists to conduct mediations in a timely manner, which is doubtful at best.

As Waj Hussain of 25 Canada Square Chambers points out, there can be other unintended consequences, including the deterioration of relations between parties following unsuccessful mediation and greater costs for litigants. As mandatory mediation adds an extra stage to litigation, it may even increase the administrative burden on courts.

Nevertheless, there is little doubt that mandatory mediation is here to stay. Justice minister Sarah Sackman recently praised its "considerable" merits to Parliament, although she said that the Government has no plans to extend it to such matters as group claims - yet.