Commercial disputes between parties resulting enormous drain on time, energy and money, particularly in commercial matters as this is very disruptive to your business and your personal life.
Getting into a dispute can at times be an unavoidable part of running a business, whether it be with a supplier, a customer, your tenant or landlord. Unfortunately, disputes can be difficult to resolve by yourself. Understandably there are often strong emotions involved and it can be difficult if not impossible to even talk to the other party. It’s also easy to lose sight of what you are trying to achieve. Mediation can be a highly effective and efficient way to resolve disputes. It is almost always cheaper and quicker than going to court or a tribunal.
Mediation helps the parties communicate with each other when communication is difficult. It helps people focus on finding a solution that both parties can accept. There are costs to a long, drawn-out dispute, especially if it ends up in court and mediation helps the parties to a dispute weigh all the considerations so they can understand the best outcome for them.
Speed: Using a mediator is much faster than going to court. If you and the other party reach an agreement, it is best to put it in writing and sign immediately. This effectively becomes a legal contract and is enforceable. (In the rare situation where one party fails to comply, it is possible to obtain enforcement through a court order). By contrast, if a case goes to court, it usually takes many months to gather evidence and prepare for multiple hearings. A court judgement may then have to be enforced through other processes, involving even more time.
Mediation is a great alternative and can be cost-effective and quicker path to resolution and litigation stop mediation. Also gives you control over the outcome rather than the risk of a Court getting it wrong.
Cost
Mediation helps avoid the heavy expense of preparing for and appearing in court. The major cost in any court process will be lawyers, barristers, and expert witnesses, who typically charge by the hour. The unsuccessful party in court can be further penalised by a judge’s order to pay the winner’s legal costs. A mediated settlement avoids most of these costs, and the parties can agree on who pays for whatever costs do arise. Even if you end up in court after an unsuccessful mediation attempt, it is likely that you and the other party will have significantly narrowed down the issues in dispute.
Flexibility
Mediation gives you more control over how a dispute is handled. A session can be scheduled at a time and location that suits both you and the other party. Rather than have a solution imposed by a court based on a narrow set of legal issues, the parties can decide what to do while looking at the commercial situation in full. Agreements reached through mediation can include practical remedies and personal outcomes – not just purely legal ones.
Confidentiality
Unlike court hearings, mediation remains private and is not open to the public. If a dispute goes to court later, anything said or produced during the mediation session cannot be used as evidence. You also have the option to privately share information with the mediator that can help guide the conversation. This information will not be passed on to the other party without your consent.
Satisfaction
Mediation is a less formal and adversarial way to resolve disputes. This can be important when you want to limit personal stress and anxiety, and if you want to maintain a professional relationship with the other party. Simply talking through the situation can help parties understand each other’s perspective. This calms things down, allowing everyone to refocus on the future.