Why consider mediation

Mediation is an increasingly popular form of dispute resolution and is becoming increasingly encouraged by the court.

Research from the Centre for Effective Dispute Resolution (CEDR) shows that commercial mediations are up by 38 per cent with an overall settlement rate of 93 per cent.

The relatively short period of time taken to achieve a successful resolution is also highlighted – with 73 per cent of cases settling within one day and a further 21 per cent reaching a successful conclusion a shortly after.

In addition to being a speedier and cost-effective was to settle disputes, it is important to remember that, nowadays, the courts expect the parties to have considered some form of alternative dispute resolution, including mediation, and are placing emphasis on the importance of doing so.

In the absence of the parties engaging in some form of alternative dispute resolution, the court has the power to order that they provide reasons for any failure to do so and any ultimate failure to consider alternative dispute resolution can result in costly sanctions.

The benefits of mediation include:

• A speedier and more cost-effective resolution than litigation
• The opportunity to achieve a successful settlement often after just one mediation session
• Working to find common ground between parties is less likely to create acrimony – which is particularly important if you hope to continue a commercial relationship with the party in future
• Participants take ownership of the process rather than a judge ‘imposing’ a decision
• The process is voluntary for all participants
• Independent, impartial mediator enables parties to work through issues without apportioning blame
• Mediation is confidential and ‘without prejudice’