Business Mediation Explained

Mediation offers a quick, flexible and confidential means for resolving business disputes. It is a form of alternative dispute resolution and can help you avoid the often expensive and time-consuming court process.

What is mediation?

Mediation is a process in which parties, through the direction of an intermediary known as a mediator, attempt to reach a negotiated settlement of their case. The mediator is a qualified individual who does not represent either party, but instead provides a service on a neutral and impartial basis.

The process of mediation often takes place in a designated venue. Each party attends, often with their legal representative. The parties discuss their case with the mediator on a confidential basis. The mediator then works back and forth between the parties in attempt to find a suitable resolution. Should an agreement be reached, a court order may be drafted and signed by the parties to ensure that the settlement takes effect.

Benefits of mediation

There are several benefits of mediation. Firstly, if you do reach an agreement through mediation, then it is much cheaper than going to court. The court process is inherently expensive. Successful mediation will save both you and the other party a lot of money.

Secondly, mediation is much faster than going through the courts. In fact, parties often try to conclude the mediation process in one sitting. If you go to court, you’ll be at the mercy of the court’s timetable, meaning there could be delays.

Thirdly, mediation is undertaken on a confidential basis. The specifics of the dispute and outcome reached are not available to the public. Also, mediation takes place on a without prejudice basis. This means whatever is said in mediation, stays in mediation. The discussions cannot be reproduced in court.

There are also various commercial benefits to mediation. The process of resolving a dispute in court often leaves one party feeling aggrieved. As a result, any existing relationship between the parties is likely irreversibly damaged. In contrast, mediation allows for an open discussion, with a resolution requiring the approval of both parties.

Speak to our business dispute solicitors

Mediation and alternative dispute resolution in general is an increasingly used tool to help resolve business disputes. The Civil Procedural Rules, which provide the rules on civil disputes, requires parties to give consideration to alternative dispute resolution.

At Aticus Law, we have an established team of company law solicitors that can offer you advice and assistance on the mediation process and other forms of alternative dispute resolution. If you are facing a business dispute and you believe you would benefit from mediation, please contact our offices.