Are you in deadlock in a commercial dispute?
What’s the best way of reaching a conclusion when you find your company in a commercial dispute with seemingly nowhere to go?
More and more companies are opting for commercial mediation to assist parties in resolving their disputes to reach mutually acceptable solutions.
Experienced commercial litigator Mike Doherty, now a qualified mediator at Sheffield’s Wake Smith Solicitors and an Associate Member of the Civil Mediation Council, explains how specialist civil/commercial litigation mediation can help parties locked in disputes.
Mike said: “Mediation is a great forum and opportunity for disputing parties entrenched in their positions and in deadlock, to move forward and reach a settlement.
“Mediation can re-open dialogue and bring people back to the negotiating table. It often also leads to parties gaining a much better understanding of the underlying issues and the opposing party’s perspective, which in turn increases the prospect of movement and compromise.
“There are many advantages to resolving matters through mediation rather than litigating all the way to trial. For example, since whatever is stated in a mediation is confidential, it provides the parties with the opportunity of being entirely candid and frank with each other without the risk of such potentially undermining their positions.
“Also, with mediation the parties have flexibility and control over the outcome of their dispute and any agreements reached. They can agree to creative solutions that would not be available for a Judge to order via the Court process.”
What is commercial mediation?
- Commercial mediation is a constructive process used to resolve disputes between parties. individuals, businesses, or organisations.
- Mediation involves a trained mediator who acts as an impartial third party to facilitate communication between disputing parties. A mediator can help you to find a compromise and avoid going to court.
- Mediation is voluntary and confidential. Participants agree on what information can be shared outside the mediation process.
What is the process of commercial mediation?
- Start mediation as soon as possible to prevent situations from worsening.
- The mediator acts as a neutral third party and uses experience and knowledge in civil/commercial disputes to assist parties in resolving their disputes to reach a mutually agreeable solution.
- The mediator gains a full understanding of both the facts and issues, but also what was most important to the parties.
- The mediator does not decide who is right or wrong, but instead facilitates constructive negotiations and can, if necessary, challenge the parties arguments/positions/reasoning.
- The process is consensual – either party can walk away at any time unless an agreement is signed.
What are the benefits?
- A mediator should have a more objective perspective on matters and encourage the parties to think about their objectives, rather than their entrenched positions.
- As mediation is more flexible and less formal, it allows for open dialogue and creative solutions.
- Parties can engage without being seen to lose face as mediation is a planned part of the dispute resolution process.
- Communications within a mediation are confidential and without prejudice to any Court proceedings, freeing the parties up to have frank and candid discussions.
- Parties can agree on solutions beyond the remedies available to a judge or an arbitrator and outside the scope of the existing dispute.
- Agreements arising out of mediation are more likely to be complied with voluntarily and are more likely to preserve an amicable and sustainable relationship between the parties.
- Once a mediation settlement agreement is drafted and signed by all parties, it becomes legally binding. However, as mediation is voluntary, it remains voluntary up to the point of the signing of any agreement. Therefore, heading to court remains an option should either party decide not to sign the mediation settlement agreement.
- Mediation can be a very cost-effective way of resolving commercial disputes (especially if attempted at an early stage).
For further information on commercial dispute mediation contact Mike Doherty at Wake Smith Solicitors on 0114 224 2048 or email [email protected]
