Could your existing commercial dispute be solved through a different legal route than traditional litigation?
The short answer is that almost all commercial mediation cases are suitable for mediation.
Modern litigation now concentrates on helping clients reach swift resolutions and save money with many cases now being settled with the help of commercial mediation.
It can help provide more flexible, cost effective ways than traditional litigation, often viewed as costly and complex, with parties resolving their disputes through mutually acceptable solutions through an experienced mediator.
Commercial litigator Mike Doherty, a qualified mediator at Sheffield’s Wake Smith Solicitors and an Associate Member of the Civil Mediation Council, looks at the issue.
“It is almost always worth attempting mediation on commercial disputes over the small claims (£10,000) limit and doing so can result in great benefits for the disputing parties, especially if it’s done at an early stage and before matters have escalated.
“Also the mediation process often allows the parties to gain a much better understanding of the underlying issues and the opposing party’s perspective, and quite often the level of evidence they have to support their position, which in turn increases the prospect of movement and compromise.”
What is commercial mediation?
- A constructive process to resolve disputes between parties. Individuals or businesses.
- A trained mediator acts as an impartial third party to facilitate communication between disputing parties, to find a compromise and avoid going to court.
- It is voluntary and confidential. Participants agree on what information can be shared outside the mediation process.
What is the commercial mediation process?
- The mediator acts as a neutral third party and uses experience and knowledge in civil/commercial disputes to help parties resolve 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 and interests, 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 normal part of the dispute resolution process.
- Communications within mediations 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, proceeding to court remains an option should either party decide not to sign the mediation settlement agreement.
Cost effective solutions
Do you have an existing commercial dispute that needs solving? Find out how Wake Smith Solicitors can help your company dispute through mediation.
For further information contact Mike Doherty at Wake Smith Solicitors on 0114 224 2048 or email [email protected]
