What Is Business Mediation
Business mediation can be thought of as “assisted negotiation” – helping parties settle their disputes by agreement rather than litigation through the courts. Business mediation can resolve even the hardest-fought disputes.
The business mediator reviews files submitted by both parties
The business mediator discusses the matter with each party, separately, to understand their position
The business mediation is held in a neutral place, such as a hotel or conference centre
With the help of the business mediator, parties try to reach consensus
The business mediator summarises areas of agreement
The aim is for all parties to sign a binding settlement agreement
Why Chose Business Mediation
Business mediation is suitable for all kinds of civil and commercial disputes.
Business mediators are impartial and balanced, working with each party and not favouring one party over the other.
Business mediation can be proposed by either party. To do so is not a sign of weakness but of commercial awareness and diplomacy. Business mediation is frequently requested by parties with strong cases
Business mediation is flexible. Courts can usually only award monetary judgments, whilst an agreement reached through business mediation could include, for example:
Giving a party another chance to perform or remedy the problem;
The parties entering into a new agreement;
One party giving property or an asset as part of a settlement.
Mediation can be completed in months, if not weeks. Litigation can take years.
Business mediation is highly successful. Over 75% of cases settle at a mediation or shortly afterwards. If a dispute does not end in agreement, the matter can continue through the courts or by arbitration, but there is nothing to prevent the parties attempting business mediation again at a later date.
Business mediation is voluntary and collaborative. Parties can leave at any time for any, or no, reason and a solution is never imposed on an unwilling participant.
Business mediation is confidential. Discussions in a mediation should not be used in any court proceedings.
Business mediation can restore or recreate the commercial relationship you had before a dispute arose – even if you think the relationship is over.
Business Mediation Is Not:
Arbitration. Arbitration is a binding process. In mediation, no result can be forced on either party.
A substitute for hiring lawyers. Parties can, and should, consult their lawyers during the mediation process.
CLAIMANTS – why you should consider business mediation
Business mediation may cost less than 1% of your claim – this could amount to only a few months’ interest.
If you wait for judgment by the courts, the Defendant’s assets may be dissipated.
You may lose the claim in court.
Even if you win in court, it may take years to collect the judgment (if at all).
There are always irrecoverable legal costs incurred in taking claims to court and enforcing judgments.
DEFENDANTS – why you should consider business mediation
The Claimant knows resolution will be delayed by staying in the courts. You may be able to use that delay to negotiate a discount – pay less now than you might have to later.
A settlement could provide for payment in manageable instalments, whereas a judgment will not.
You can negotiate a further discount for litigation risk – the chance that the Claimant will be unsuccessful.
You may be able to offer a settlement of something other than money – a different property, some extra features, a free period of service and so on.
You avoid the risk of travel bans, asset attachments etc.
You may even realise a new business opportunity with the Claimant from the mediation process – many others have successfully done so.