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 resolution.
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