In short
Start by negotiating and, if that fails, send a letter before action. If the other side still will not settle, the main options are mediation (a helped negotiation), a binding expert decision such as Dispute Neutral, arbitration, or court. For most disputes up to £150,000 that turn on documents, a fixed-fee binding decision is the quickest and cheapest way to a final answer.
Key facts
- Courts expect parties to try alternative dispute resolution before and during proceedings.
- In England and Wales the small claims track covers most claims up to £10,000.
- Dispute Neutral decides disputes up to £150,000 within 10 business days of the matter being ready.
- Dispute Neutral fees are fixed at £650 to £1,500 + VAT.
1. Talk, and put it in writing
Many disputes end with a phone call followed by an email setting out what was agreed. Keep copies of the contract, invoices, delivery notes and correspondence: you will need them whatever happens next.
2. Send a letter before action
A formal letter setting out what is owed, why, and what you will do if it is not paid by a deadline. It is expected before court proceedings and often prompts payment. For unpaid invoices you can usually add statutory interest and fixed compensation. Guide to letters before action and interest calculator.
3. Mediation
A mediator helps both sides negotiate. Nobody imposes a decision, so it works only if both want a deal. Mediation compared with a binding decision.
4. A binding decision on the documents
Both parties agree to let an independent expert decide. With Dispute Neutral, a lawyer with at least 15 years’ experience reads both sides’ written cases and evidence and gives a binding written decision within 10 business days of the matter being ready, for a fixed fee of £650 to £1,500 + VAT. The other side must agree. How to ask them.
5. Arbitration
A formal, private process under the Arbitration Act 1996, better suited to larger and more complex disputes. Arbitration compared.
6. Court
In England and Wales, most claims up to £10,000 go to the small claims track. Larger claims go to the fast track, intermediate track or multi-track, where legal costs and the risk of paying the other side’s costs rise sharply. Hearings and judgments are usually public. The small claims court compared and court costs compared.
Quick comparison
| Option | Gives a decision? | Typical cost | Private? |
|---|---|---|---|
| Letter before action | No | Low | Yes |
| Mediation | No, a settlement if agreed | Mediator’s fees | Yes |
| Dispute Neutral | Yes, binding | £650 to £1,500 + VAT, fixed | Yes |
| Arbitration | Yes, binding | Usually charged by time | Yes |
| Court | Yes, judgment | Court fees plus legal costs | Usually public |
This guide is general information, not legal advice.