More and more we are finding that clients are choosing to
resolve commercial disputes through mediation and informal
settlements. Clients can wait months to be heard before the Courts
and the process can be stressful and expensive.
Mediation involves having a trained mediator guide the
parties' negotiations to resolve the dispute. There are a
number of benefits to opting for this approach, apart from the cost
and time factors:
Mediation is private. This can be beneficial
from a commercial perspective by keeping your business disputes out
of the public eye.
Offers a broader range of settlement options and
greater flexibility. The parties can agree on options that
are an alternative to those that can be handed down by a Court.
These can include services or goods in kind, apologies and
differing payment options.
Allows you to gain a commercial resolution.
The cost and disruption to business can be minimised by focusing on
a resolution at an early stage.
Mediation can allow you to come to a mutual agreement
that is commercially beneficial. Resolving your dispute
through mediation allows you to resolve the issue holistically and
not just focus on the legal issues.
In some Courts it is now mandatory for parties to attend
mediation prior to Hearing. With a successful settlement rate of
over half (at mediation or shortly thereafter), it is not
surprising. We are finding that parties are able to experience the
commercial benefits by considering this settlement approach.
If you do have a dispute arise, it is best to seek legal advice
as soon as possible. Communication with your legal advisor is
crucial and may assist in allowing you to reach an earlier
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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