26 WWW.LAWYER-MONTHLY.COM | MAY 2022 Although external third-party funding (“TPF”) is becoming progressively more common across litigation and arbitration, there is virtually no commentary available on this formof funding formediationandalternative forms of dispute resolution. This is perhaps not entirely surprising, as most mediations occur prior to or alongside litigation and are conducted privately. Increasingly, mediation is used in circumstances where litigation is not even in prospect or where no solicitors are instructed and so, alongside that, there will need to be greater consideration of the costs involved. In almost all cases, mediation will be significantly less expensive than litigation (most mediations take only a day or two). However, to make optimal use of the process, mediation can still require significant preparation. Whilst this is likely to take a different form from litigation, parties may benefit from the involvement of legal representatives or other advisers, especially if there are legal issues in discussion or other complexities where an adviser can be helpful. When conducting mediation, parties constantly weigh up the likely outcomes, which inevitably includes the financial cost of continuing the dispute, including taking more adversarial routes such as litigation or arbitration. There are numerous options available to parties when looking at the costs of resolving a dispute, including legal aid, seeking pro bono assistance and entering into conditional fee arrangements or damages-based agreements, which can all help make pursuing a dispute more financially viable. TPF is equally well suited to mediation. In fact, the prospect of a dispute being settled via mediation is hugely appealing to the funders as, generally speaking, risk Scotland’s only independent provider of third-party commercial funding, Restitution Ltd, has carved out a niche in the marketplace and over the past 10 years has worked with law firms and their clients on claims with damages ranging from tens of thousands right up to multimillion pound claims. In this article we hear from Frances Sim, general counsel at Restitution, on another option for funding mediation. Is There Another Option to Fund Mediation? Frances Sim WS, General Counsel Restitution Ltd 6 St Colme St, Edinburgh EH3 6AD Tel: +44 07547 824773 E: frances@restitutionltd.co.uk www.restitutionltd.co.uk Frances Sim WS is the general counsel for Restitution Ltd and a member of the Society of Writers to Her Majesty’s Signet, known as the WS Society. She has over 20 years’ experience working in private practice within Edinburgh before joining Restitution in 2017. Last year, Frances trained as a mediator and now offers her services as a volunteer mediator covering small claims at the Sheriff Court. Restitution Ltd, established in 2012, is a specialist provider of commercial litigation, arbitration, mediation and dispute resolution funding. IS THERE ANOTHER OPTION TO FUND MEDIATION?
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