Reasonable communication between opposing parties is among the first casualties in many commercial disputes.
If negotiating a mutually agreeable dispute settlement has proven impossible, mediation may be a viable option.
Commercial mediation is an ADR process in which a neutral third party attempts to facilitate a productive back-and-forth between businesses and people involved in a commercial dispute.
Mediation is voluntary and non-binding.
The mediator will make no judgment in the dispute but simply try to facilitate an agreement between the relevant people involved.
Mediation aims to help businesses and individuals find a mutually agreeable settlement and end their dispute.
However, mediation alone rarely leads to the most viable outcome.
Substantive steps must be taken in advance to position you on the front foot.
Instructing a solicitor ensures that the other side understands that — absent an agreement — the outcome will be much worse.
Here are examples of steps Helix frequently takes to further the interests of our clients:
- Issuing court proceedings
- Preparation of evidence
- Issuing applications
- Attending hearings
- Drafting pre-action letters, documents, and information
At that point, mediation arrangements can be pinned down in further detail.
The mediation process itself is highly flexible but typically includes the following steps.
1. Appointing a Mediator: All parties to the dispute must agree on a neutral third party to act as a mediator on their behalf. Usually, one party (the Claimant) proposes three alternative mediators, and the Defendant selects one.
Solicitors and barristers often act as mediators, but legal qualifications are not required. A mediator is not a judge.
A thorough understanding of the law will help the mediator advise each party on the legal strength of their position.
Numerous professional and educational organisations, including CEDR and the ADR Group, accredit non-lawyer mediators in the UK.
Typically, the parties will share the mediation costs equally, and fees are paid in advance.
2. Discussion and Planning: Once appointed, the mediator will meet with each party — virtually, in person or over the phone — to understand their positions and the particulars of the dispute.
3. Negotiation: After assessing the nature of the dispute, the mediator will attempt to negotiate a settlement between the parties.
Depending on each party’s position and how entrenched it has become, the mediator may or may not be able to find a solution that everyone agrees on.
Because mediation is voluntary, parties to the dispute may end the process at any time, with or without giving a reason.
In that event, alternative resolutions must be sought, including through litigation.
4. Settlement Agreement: If the mediator can negotiate a solution, they will draft a settlement agreement.
The settlement agreement is binding — meaning the parties cannot back out if they agree to the settlement terms during the mediation.