Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, what recent discussions she has had with relevant stakeholders on the enforcement of third party litigation funding agreements following the PACCAR judgement.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
The Government recognises the critical role litigation funding plays in ensuring access to justice.
I have engaged with relevant stakeholders on the enforcement of third party litigation funding agreements and the wider market following the PACCAR judgment via my officials.
The Government is due to receive the Civil Justice Council’s (CJC) report on litigation funding in summer 2025, which will inform further decisions on policy and legislation. As part of their review, the CJC conducted a consultation with key stakeholders in relation to third party litigation funding.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, what discussions she has had with relevant stakeholders on the use of mediation in administrative justice claims.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
Administrative justice issues extend across a very broad range of diverse disputes and jurisdictions. The Government continues to engage with stakeholders on the use of Dispute Resolution across various jurisdictions.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, whether she had made an assessment of the potential merits of the use of mandatory mediation in (a) group actions and (b) class action claims.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
The merits of mediation are considerable. It offers parties a swifter and less costly way to resolve legal disputes and can save parties the time and cost of going to court, thus saving sitting days and reducing the court backlog.
The Government has no plans to consider mandatory mediation at this time but continues to explore opportunities to expand the use of dispute resolution across the civil justice system.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, whether she has made an assessment of the potential merits of reforming the grievance and complaints process in employment claims to mandate mediation.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
The Government has not made a decision to introduce mandatory mediation in Employment Tribunal claims. We are continuing to explore and assess the potential merits of options to utilise more mediation and alternative dispute resolution in the context of the forthcoming Employment Rights Bill.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, what discussions she has had with relevant stakeholders on the expansion of mandatory mediation to higher value claims.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
The Ministry of Justice continues to engage with stakeholders to explore ways that Dispute Resolution can be used across various jurisdictions. No decision has been made to introduce mandatory mediation to higher value claims, and options to use different Dispute Resolution approaches remain open.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, whether she has had recent discussions with Lawtech UK on the feasibility study for an SME online dispute resolution platform.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
In 2021, LawtechUK delivered a feasibility study for the development of an online platform that could assist smaller businesses in recovering unpaid debts. The study demonstrated how the platform could be established and become financially self-sustaining. It set out a business case for potential developers and estimated that the platform, if built, could support the resolution of 200,000 disputes over a five-year period, accounting for £3.4 billion in debt value.
The intention of the study was not for LawtechUK or Government to fund or develop the platform itself but was aimed at raising awareness of the issue and encourage innovative developers to build and finance the technology. The current phase of LawtechUK does not have any plans to revisit this issue at present.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, what assessment she has made of the potential impact of mandatory self-regulation on third party litigation funders.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
The Government recognises the critical role litigation funding plays in ensuring access to justice.
Following the PACCAR judgment, concerns have been raised about the need for greater regulation of the litigation funding market, which currently operates a system of voluntary self-regulation.
The Civil Justice Council is considering this issue in its review of litigation funding in England and Wales, which will conclude in summer 2025. Once the Government receives this report, it will assess the potential impact of its recommendations on funders, claimants and the wider market.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, what steps she is taking to encourage higher attendance rates at the Small Claims Mediation Service.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
Since the introduction of integrated mediation for small claims under £10,000 in the county courts in 2024, attendance at mediation appointments has been mandatory. As part of the litigation journey, parties are required to attend a free, one-hour mediation appointment with HMCTS’ Small Claims Mediation Service.
Where mediation is not successful, the case will progress to a court hearing.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, what discussions she has had with the Small Claims Mediation Service on the introduction of mandatory mediation for small claims.
Answered by Sarah Sackman - Minister of State (Ministry of Justice)
The HMCTS Small Claims Mediation Service has been closely involved in the implementation of mandatory mediation for small claims in the county courts, working together with the Ministry of Justice to ensure that the service and its staff are fully prepared to manage the increase in case volume.