Commercial Mediation
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 and what are the benefits?
- A mediator assists parties in talking through issues, negotiating, and reaching a mutually agreeable solution.
- As mediation is more flexible and less formal, it allows for open dialogue and creative solutions.
- 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.
- The process is consensual – either party can walk away at any time unless an agreement is signed.
- Start mediation as soon as possible to prevent situations from worsening.
- Mediation can be a very cost-effective way of resolving commercial disputes (especially if attempted at an early stage).
- A mediator should have a more objective perspective on matters and encourage the parties to think about their objectives rather than their entrenched positions. The mediator is there to facilitate discussion and ultimately a settlement.
- Parties can engage without being seen to lose face as mediation is a planned part of the dispute resolution process.
- 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.
- 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.
Why chose Wake Smith?
Mike Doherty has over 20+ years’ experience in Civil/Commercial Litigation and is an accredited mediator with the Civil Mediation Council.
