Glossary – Mediation

Acknowledgement of Service

Acknowledgment by the Defendant that they have been served with the claim, on which they can indicate if they want to dispute the claim or the jurisdiction. The form is contained in the Response Pack.

Adjudication

This can mean one of two things:

1)  a process in which a neutral is required by contract or statute to make summary binding decisions on contractual disputes without following the procedures of litigation or arbitration (eg The Housing Grants, Construction and Regeneration Act 1996), or

2) a broad term describing a category of dispute resolution processes in which a third party neutral makes some form of decision on the outcome of the case.

Administration

Short-term measure for company in financial difficulty, which aims to give administrator time to see if company can be saved.

Alternative dispute resolution (ADR)

A method of resolving disputes other than by litigation or arbitration.

Bankruptcy

Formal court process in which debtor is released from debts they owe and trustee in bankruptcy appointed to realise assets for creditors.

Causation

Causation is a principle used in assessing the level of damages for breach of contract or duty in tort. Damages will be awarded only when loss was caused by the breach.

Civil Procedure Rules (CPR)

The rules of civil procedure used by the Court in civil cases in England and Wales. The rules were designed to improve access to justice by making legal proceedings cheaper, quicker and easier to understand for non-lawyers.

Claim Form

The form that starts a case and where the Claimant sets out what the claim is for.

Claimant

The person who makes the claim.

Compulsory liquidation

Winding-up of a company ordered by the court.

Counterclaim

A claim brought by the Defendant against the Claimant.

Court Order

The judge’s written decision.

Creditor

A person or entity who is owed money.

Creditors' voluntary liquidation (CVL)

Voluntary process to wind up company, an alternative to company being wound up by the court by compulsory liquidation.

Debtor

A person or entity who owes money.

Defence form

The form the Defendant completes to explain why the claim is disputed.

Defendant

The person against whom an action has been brought in court.

Directions questionnaire

The form used by the court to help the court decide how to deal with the case.

Dissolved

Where a company ceases to exist as a legal entity at Companies House.

Enforcement

If the Defendant fails to comply with the court order, the court will not do anything unless you ask it to enforce the order.

Fee remission

Depending on your circumstances, the court may decide that you are eligible to pay a reduced court fee or no fee at all.

Individual voluntary arrangement (IVA)

Contractual arrangement between individual and creditors for composition of that person's debts or a scheme of arrangement.

Injunction

A court order prohibiting a person from taking a particular action (a prohibitory injunction) or requiring them to take a particular action (a mandatory injunction).

Insolvency Practitioner (IP)

Person authorised by a regulated body to take appointments in the insolvency of individuals or companies, also referred to as an office holder.

Liquidator

The Official Receiver or IP appointed over a company once the company has been wound up.

Litigation

The taking of legal action.

MCOL

Money Claim Online is an online system, part of the County Court Business Centre. The online system allows county court claims to be issued for fixed sums up to £10,000 by individuals and organisations over the internet, anywhere, anytime. MCOL enables a Claimant to request a claim online, check the status of the claim and, where appropriate, request entry of judgment. Payment of the court fee can only be made using a credit or debit card and such fees are non-refundable. Defendants can also use MCOL to reply to and check the status of claims against them online.

Members' voluntary liquidation (MVL)

Voluntary process to wind up the company which can only be used where the company is solvent.

Mitigation

A claimant may be under a duty to mitigate (minimise) their loss if there is a breach of contract or a tort is committed. The effect of a failure to mitigate is that the claimant cannot recover damages in respect of the portion of their loss that is attributable to their own conduct or lack of it.

Notice of Issue

Letter from the court informing the Claimant that the claim has been issued, the claim number, date of service and the deadline by when the Defendant should respond.

Notice of proposed allocation

Notice issued by the court once a defence has been filed, provisionally allocating the claim to a track. The notice specifies any matter to be complied with by the date specified in the notice and requires parties to file a directions questionnaire.

Part 36 offer

Formal offer made under the CPR to seek to settle the claim.

Particulars of Claim

A concise written statement of the facts and law on which a Claimant's claim is based and what the Claimant is seeking from the Defendant.

Pre-Action Protocol

A prescribed set of procedures that a court will expect the parties to a dispute to have followed before issuing proceedings.

Pre-action protocol

There are pre-action protocols relating to specific types of disputes. You should follow the one that most closely relates to the subject matter of the dispute. If there is no protocol for the type of dispute you are dealing with you should follow the Practice Direction Pre-Action Conduct and Protocols. The court may impose costs sanctions for failure to comply with the relevant pre-action protocol or the Practice Direction Pre-Action Conduct and Protocols.

Probate

When a person dies somebody has to deal with their estate (money property and possessions left) by collecting in all the money, paying any debts and distributing what is left to those people entitled to it. Probate is the court’s authority, given to a person or persons, to administer a deceased person’s estate, and the document issued by the Probate Service is called a Grant of Representation. This document is usually required by the asset holders as proof to show the correct person or persons have the Probate Service’s authority to administer a deceased person’s estate.

Response Pack

The pack of forms and information sent to the Defendant after a claim starts.

Service

The term used when parties have received, or are deemed to have received, formal documents from the Court.

Small Claims Mediation Service

A free service provided by the civil courts for people involved in a small claims dispute (claims under £10,000). The mediator is not a judge. Their role is not to decide who is right or wrong. They will not take sides. They are skilled in negotiations and helping parties in disputes to reach terms of settlement. They will try to break down barriers and encourage the parties to set out what it is each of them is seeking and then explore whether there is middle ground to settle the dispute.

Statement of truth

Certain documents (including statements of case and witness statements) must be verified by a statement of truth. A statement of truth is a statement confirming that the person making it believes that the facts stated in the document are true.

Tort

A wrongful act or omission for which damages can be obtained in the civil court.

Voluntary liquidation

Liquidation not involving the court, either members' voluntary liquidation for solvent companies, or creditors' voluntary liquidation for insolvent companies.

Witness Statements

Written statements made by persons with knowledge of the facts in dispute and submitted to Court ahead of the trial containing the evidence they are relying on