What is commercial mediation?

Commercial mediation is a process that parties to a dispute can go through, which is a way of trying to resolve the dispute, the place an unbiased third party is appointed to behave as a facilitator between them to help them negotiate a settlement dispute. That unbiased third party isn’t a judge. They’re not going to make a call on the proof or inform you who’s right and who’s mistaken and who wins and who loses. They will allow you to see either party’s position and assist them come to a settlement.

The process of commercial mediation

It’s a completely voluntary process. You wouldn’t have to attend commercial mediation, and if you end up at a mediation, you’ll be able to depart at any time. But it is a good opportunity to have a commercial dispute case settled without the need for the proceedings to either, if they have already started, continue and continue at increased prices for both parties, or alternatively, have a mediation at an early stage earlier than any litigation has started in an try to avoid those costs beginning or running away from the parties at a very early stage.

So, it’s a form of alternative dispute decision, which is an umbrella term for a lot of methods of making an attempt to resolve disputes without having to interact in court proceedings, and it is turning into more and more prevalent in companies’ minds after they’re having a dispute.

Relatively than, «Let’s have a big argument and spending plenty of prices and lots of time in dealing with the dispute», «How can we get to the top of the dispute in a quicker way and a more price-effective way?» And commercial mediation is a large part of that and a very good way of reaching that finish goal in a a lot more price- and time-efficient manner.

Do I have to attend commercial mediation?

Mediation is a voluntary process, however there will be adverse cost consequences in litigation if a court believes that a party has unreasonably refused to mediate.

So, if one party to a dispute makes a suggestion of mediation, it would be very prudent, unless there’s a particularly good reason why the opposite party does not wish to mediate, and those reasons could also be that the other party’s case doesn’t have any merit or the worth of the case concerned could be such that the prices of mediation, even attending a mediation can be disproportionate to the worth of the dispute.

But, that aside, you would need to have a fairly good reason not to, to not mediate. In any other case, a court might make an adverse costs order against a party who has unreasonably refused to mediate.

So, it is a case really that the court does anticipate the parties always and all levels of a dispute to try to achieve a settlement, not essentially via mediation completely, but the court does expect the parties to try and reach a settlement. And mediation, as we have already mentioned, is a good way of doing that in a timely and price-efficient manner.

Is the end result of commercial mediation legally binding?

The result of mediation would be legally binding in very particular circumstances, and that is as soon as an agreement recording the position reached at mediation in a legally binding document.

So, it’s recorded in writing and signed by these parties to the dispute. Until that has happened, the outcome of a mediation will not be legally binding, and it would be open to either party to the mediation to renege on the agreement or not enter into the agreement or seek to try to change the agreement for each through the course of the mediation, up until the purpose that it is being recorded in writing and signed by the parties. And therefore, we advise shoppers who’re at mediation and have gone by way of the process of reaching a settlement at mediation to strive their utmost to get that agreement signed on the day of the mediation. And typically, the recording of the agreement can take just as long, if not longer, as to truly the parties reaching the agreement at mediation themselves.