What is commercial mediation?

Commercial mediation is a process that parties to a dispute can undergo, which is a way of attempting to resolve the dispute, where an independent third party is appointed to act as a facilitator between them to assist them negotiate a settlement dispute. That unbiased third party isn’t a judge. They’re not going to make a choice on the proof or let you know who’s proper and who’s unsuitable and who wins and who loses. They will assist you to see either party’s position and assist them come to a settlement.

The process of commercial mediation

It’s a totally voluntary process. You do not need to attend commercial mediation, and when you find yourself at a mediation, you may depart at any time. However it is a great opportunity to have a commercial dispute case settled without the need for the proceedings to either, if they’ve already started, continue and continue at elevated prices for both parties, or alternatively, have a mediation at an early stage earlier than any litigation has started in an try and avoid those costs starting or running away from the parties at a very early stage.

So, it’s a form of different dispute resolution, which is an umbrella time period for many methods of making an attempt to resolve disputes without having to have interaction in court proceedings, and it is becoming more and more prevalent in businesses’ minds when they’re having a dispute.

Slightly than, “Let’s have a big argument and spending plenty of prices and plenty of time in dealing with the dispute”, “How can we get to the end of the dispute in a quicker way and a more price-efficient way?” And commercial mediation is a large part of that and a superb way of reaching that finish goal in a a lot more value- and time-efficient manner.

Do I’ve to attend commercial mediation?

Mediation is a voluntary process, however there can be adverse value 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 other party does not need to mediate, and those reasons may be that the other party’s case doesn’t have any merit or the value of the case concerned would be such that the costs of mediation, even attending a mediation could be disproportionate to the value of the dispute.

But, that aside, you would need to have a fairly good reason to not, to not mediate. Otherwise, a court may make an adverse costs order towards 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 aim to achieve a settlement, not essentially by means of mediation solely, however the court does count on the parties to try and attain a settlement. And mediation, as we now have already mentioned, is a good way of doing that in a timely and price-effective manner.

Is the result of commercial mediation legally binding?

The end result of mediation could be legally binding in very specific circumstances, and that’s 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 occurred, the end result of a mediation will not be legally binding, and it could 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 every through the course of the mediation, up until the point that it is being recorded in writing and signed by the parties. And subsequently, we advise clients who are at mediation and have gone by way of the process of reaching a settlement at mediation to try their utmost to get that agreement signed on the day of the mediation. And sometimes, the recording of the agreement can take just as lengthy, if not longer, as to actually the parties reaching the agreement at mediation themselves.

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