Mandatory Mediation on the Small Claims Track and Writing a Witness Statement

For an eligible small claim, Practice Direction 51ZE provides for referral to a free telephone mediation session through the Small Claims Mediation Service before a hearing; attendance is mandatory when a session is scheduled under the pilot. Road traffic accident and other personal injury claims are excluded. Separately, preparing a clear witness statement is one of the most important things you can do for the hearing — and the two tasks are connected, because the preparation you do for mediation is the same preparation you need for your statement.

How mandatory mediation works

The referral

For claims under the paper procedure, the court refers an eligible claim once all parties have filed their directions questionnaires. For eligible OCMC claims, referral follows a defence if the claimant confirms they wish to continue and has not opted out of mediation. Practice Direction 51ZE runs through 6 April 2027; it does not cover road traffic accident or other personal injury claims. If a session is scheduled under the pilot, participation is mandatory.

The session

HMCTS contacts both parties to arrange a one-hour telephone appointment. A trained mediator speaks to each side separately (shuttle mediation) and tries to find common ground. The mediator does not decide who is right or wrong — they help both sides explore whether a deal is possible.

You do not need to prepare a formal case summary for mediation, but you should know:

• Exactly how much you are claiming and how you calculated it
• What you would accept to settle (your realistic bottom line — not what you would ideally want)
• Whether you would accept payment in instalments

What happens if you settle

If you reach an agreement during mediation, the proceedings are stayed, with permission to apply for judgment for any unpaid balance or to restore the claim for a hearing unless the parties agree to discontinue or dismiss it. If you want the settlement terms incorporated into a court order, you must apply for that order; it does not happen automatically.

What happens if mediation fails

If no agreement is reached, the case goes back to the court for a hearing date. The judge does not know what was discussed in mediation — it is confidential. Neither side can use anything the other said in mediation as evidence at the hearing.

What happens if you refuse to attend

At the final hearing, the court must consider whether a sanction is appropriate in light of whether the parties attended mediation. Under CPR 27.14(2A), the court may take non-attendance into account when deciding whether to order costs, including for unreasonable behaviour under CPR 27.14(2)(g).

Writing a witness statement for the hearing

CPR Part 27 does not automatically require formal witness statements in every small claim, but the court may direct the parties to file them. A clear written summary of your case can help the judge, and you must follow any directions made in your case.

Structure

A witness statement for a small claims hearing should be straightforward:

Heading — your full name, the case number, and that this is a witness statement in support of the claim (or defence)

Introduction — one sentence identifying who you are and your connection to the dispute ("I am the claimant. I am a sole trader who provided plumbing services to the defendant.")

The facts in chronological order — walk through what happened, when, and what documents support each point. Reference page numbers in your evidence bundle ("I sent an invoice on 15 March 2026 — see page 12 of the bundle")

The money — state exactly what you are claiming: the principal debt, any statutory interest, the court fees you want recovered

Statement of truth — "I believe that the facts stated in this witness statement are true. I understand that proceedings for contempt of court may be brought against anyone who makes, or causes to be made, a false statement in a document verified by a statement of truth without an honest belief in its truth."

Signature and date

Practical tips

Keep it short — a small claims witness statement should rarely exceed two to three pages. The judge has read the claim form and the defence; they do not need the entire backstory retold. Focus on the disputed facts.

Do not argue the law — state what happened and point to the evidence. The judge applies the law; you present the facts.

Use plain language — you do not need to write in legalese. "The defendant did not pay the invoice" is better than "The defendant failed to honour the contractual obligation to remit funds."

One statement per witness — if someone else saw relevant events (a neighbour who watched the builder abandon the site, a colleague who was present when the work was agreed), they should write their own statement in the same format.

When to serve it

The court's directions order sets the deadline for exchanging evidence. Paper small-claims directions commonly allow 14 days before the hearing; for an OCMC claim, the court is to consider directing each party to upload its documents no later than 21 days before the hearing. Follow the directions in your case.

The County Court Money Claim Guide includes a mediation preparation checklist and a witness statement template so you walk into both the mediation call and the hearing fully prepared.

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