The legal system in England and Wales is set up to encourage parties to settle of court. Negotiation between the parties is the most common way to settle disputes. However, there are other options, such as mediation and arbitration.
Mediation involves a neutral third-party mediator who will act as a broker between the parties. The mediator will help each side see the other point of view and may suggest various settlement options. The main benefit of mediation is that it is much quicker and cheaper than going to court.
Another alternative to litigation is arbitration. Arbitration is administered under a statutory framework and is presided over by the arbitrator. The arbitrator will look at the evidence and decide on the outcome. The arbitrator's decision is called an award and it is legally binding. If the parties do not agree with the award, they can take the case to court.
If either party refuses to seek alternatives before proceeding with litigation, they may be ordered to pay the opponent's legal fees.