Alternatives to court action
There are other ways of settling a dispute without going to court, such as alternative dispute resolution or complaints to an Ombudsman service.
Negotiations to avoid court action
A claimant and a defendant have an obligation to attempt to reach an agreement before the matter proceeds to court.
There is a legal requirement to attempt to resolve some disputes before starting court action. For example:
money claims
claims for possession by social landlords or mortgage lenders
disrepair claims
A claimant can be penalised by increased court costs if they do not follow steps to resolve issues before court.
The Civil Procedure Rules allow either party to make and accept offers to settle the claim at any time before or after proceedings have been commenced.[1]
Without prejudice
A claimant and a defendant can negotiate before court action without prejudice. This means that no conversations, letters or agreements that are part of the negotiations can be used as evidence in court without the agreement of both parties.
Negotiating without prejudice allows parties to negotiate more freely. When talking to the other party's solicitor, the defendant or their representative should clearly state that the communication is without prejudice.
Any agreements made between parties during without prejudice negotiations will become legally binding once agreed.
A letter bearing the heading 'without prejudice' can acknowledge a debt for the purpose of calculating the limitation period for the claimant to start court action.[2]
Without prejudice except as to costs
Negotiations that are without prejudice except as to costs are kept private from the court until the dispute is resolved.
The court can consider those negotiations only to decide who should pay the legal costs.
Alternative dispute resolution
Alternative dispute resolution (ADR) is used by parties to settle civil disputes with the help of an independent third party without the need for a formal court hearing.
Alternative dispute resolution process can include:
community mediation
commercial mediation
trade association arbitration
non-court-based arbitration
ombudsman services and regulators
Non-court methods are particularly well-suited to resolving certain housing disputes, including neighbour disputes and relationship breakdowns.
Complaints to the Ombudsman
A defendant can raise housing-related complaints with an Ombudsman service.
Ombudsman services include:
Housing Ombudsman
Local Government and Social Care Ombudsman
Financial Ombudsman Service
Using an Ombudsman service can be an alternative to going to court. The Ombudsman considers what is fair and reasonable. It is not limited to strictly applying the law.
Where court proceedings have started, a court can adjourn the case to allow the parties to make an ombudsman complaint.[3]
Housing Ombudsman
The Housing Ombudsman Service deals with complaints from residents about registered providers of social housing, including local authorities and housing associations.
Find out more about complaints to the Housing Ombudsman Service on Shelter Legal.
Local Government and Social Care Ombudsman
The Local Government and Social Care Ombudsman (LGSCO) investigates complaints against local authorities. This includes decisions related to homelessness, social services, or housing benefit issues. The LGSCO can issue recommendations on how the authority should resolve an issue.
Find out more about complaints to the Local Government and Social Care Ombudsman on Shelter Legal.
Financial Ombudsman
A customer can complain to the Financial Ombudsman Service about their bank, financial services provider, or mortgage lender because of unfair treatment.
Find out more about how to complain about a bank or lender on Shelter Legal.
Last updated: 24 December 2025