By Kim Logan, Managing Director, ADR Mediation CIC
In October 2024, the Civil Procedure Rules (CPR) were amended in a way that quietly but significantly changes the landscape for dispute resolution. Judges now have the power, at any stage of proceedings, to order parties to use Alternative Dispute Resolution (ADR), including mediation.
The change does not stop there. When making costs orders, judges can now take into account a party’s failure to comply with an ADR order, or an unreasonable refusal to engage in ADR. The Court of Appeal has already applied this power in Northamber v Genee World [2024] EWCA Civ 428.
For public bodies, particularly local authorities, this is more than just a legal technicality. It is a signal that mediation is moving from being an optional, good-practice recommendation to becoming an expected step in the dispute resolution process.
Why this matters for local authorities and in-house legal teams
For those managing public sector disputes, the message is clear: ignoring ADR is now a risk, not just a missed opportunity.
- Financial implications: Refusing to mediate could lead to cost penalties, even if you ultimately succeed in court.
- Public accountability: Legal costs and drawn-out disputes are closely scrutinised, and public bodies are expected to demonstrate value for money and responsible governance.
- Operational efficiency: Mediation can resolve matters faster, freeing up internal resources for core service delivery.
Beyond litigation – a cultural shift towards mediation
While these CPR changes apply to disputes already within the court system, they reflect a broader trend. There is an increasing expectation that organisations will explore mediation early, before cases escalate.
For local authorities, that means looking beyond legal claims to see where mediation skills and processes could de-escalate issues such as:
- Workplace disputes between colleagues or teams
- Housing and tenant conflicts
- Community tensions and neighbourhood disagreements
Embedding mediation-minded thinking across departments reduces the risk of matters reaching court at all and supports a more collaborative organisational culture.
Making mediation work before and after court
Whether ordered by a judge or initiated internally, mediation is most effective when approached with preparation and commitment. Public sector teams can strengthen their outcomes by:
- Building mediation clauses into contracts, tenancy agreements, and partnership arrangements
- Training managers, HR teams, housing officers, and in-house lawyers in mediation principles
- Establishing clear internal pathways for referring matters to mediation
- Choosing skilled mediators with relevant sector experience
- Preparing thoroughly, including understanding the issues, the stakeholders, and desired outcomes
A strategic moment for public sector leaders
The CPR changes are a reminder that mediation is no longer simply a good idea in dispute resolution. It is becoming a compliance and risk management tool. Public sector leaders have a window of opportunity to act now, reviewing their dispute resolution policies and ensuring their teams are equipped to mediate effectively.
At ADR Mediation, we work with local authorities and public bodies across the UK to build mediation capability, provide experienced mediators, and design processes that prevent disputes from escalating. With the right preparation, mediation can save time, money, and relationships while meeting both the spirit and the letter of the new rules.
To explore how we can help your organisation respond to the CPR changes, get in touch with our team today.
