Commercial Mediation

Mediation is a dispute resolution process which is an alternative cost-effective and efficient method of resolving business differences. It is a problem-solving process that is designed to help participants find a mutually acceptable resolution. More and more businesses are turning towards mediation as a common-sense route to problem-solving.

Mediation usually involves the appointment of a trained, independent third party called a ‘mediator’. Their job is to help the parties reach a negotiated settlement. Unlike a judge, the mediator has no power to decide the issue or impose a solution. Typically his or her role is to assist the parties arrive at an innovative solution or compromise that allows the parties to move forward.

The mediator arranges a confidential meeting. During the meeting, parties are encouraged to see their own and the other side’s case objectively and realistically. By focussing on the problem rather than the dispute, parties can concentrate on their future longer-term commercial interests, rather than their strict legal rights.

A single day’s mediation is usually sufficient to resolve most disputes. Setting up the mediation usually takes no more than 3 to 4 weeks.

Some of the benefits to you include:

• Cost effective
• Speedy resolution
• Greater control of outcome
• Pragmatic
• Non-confrontational
• Flexible

EVERYONE – size does NOT matter.

• Court cases – many court cases can take anything up to 12 or 15 months to come on for trial. It is also difficult to run any case to trial for anything less than £8,000 – £10,000
• Clinical negligence – for claimants who are currently seeking damages for medical accidents, mediation could prove to be a faster and cheaper option of resolving a dispute, than going to Court
• Employment Law – disputes between an employer and employee can be mediated to help sustain co-operation and maintain a healthy working relationship
• Property and building disputes
• Partnership and Shareholder disputes
• Independent Schools – to resolve disputes between staff, parents and Governors
• Charities
• Any other commercial dispute

Mediation in the UK has a very high success rate in the region of 85%. Often disputes which are not resolved during mediation settle soon afterwards.

The process works because it is voluntary and provides a flexible and informal process. It is also completely confidential. Court proceedings in comparison are generally formal, expensive, open to the public, and rigid. The litigation process removes control from the parties themselves, by imposing solutions on them. During the course of litigation, any hope of continuing a commercial relationship with your opponent is usually lost for good. Mediation changes all that.

Through mediation, the parties can achieve a much quicker and more flexible way of settling disputes. Individual and innovative solutions which are not available through Court proceedings are readily possible.

Mediation is not just about mediating disputes which might lead to litigation. Experienced mediators can also help parties to unblock impasses when they are trying to negotiate a contract or conclude a business deal. Deal mediation is becoming more and more popular in situations where mutually beneficial business relationships are failing as a result of the parties reaching a deadlock on commercial terms.

There will be occasions when the Mediation process does not succeed. Where a settlement cannot be reached, either party can still enforce his or her legal rights at Court because Mediation is a process which is only binding if both parties are in agreement. It takes nothing away from the parties’ legal rights and is not binding unless an agreement is reached on a particular solution during the course of the mediation.