Mediating a settlement can often protect ongoing business relationships
If direct negotiation is unsuccessful the parties can appoint an independent mediator to help in seeking a negotiated settlement. A third party mediator will usually have expert knowledge in the business sector to which the dispute refers. A mediator can assist parties in working towards a creative solution that satisfies the needs of both parties, rather than having to adhere to the rights and obligations between the parties under their contract.
The format of mediation is voluntary and private, allowing settlement to be reached consensually with flexibility and speed. Mediation is particularly helpful where parties wish to maintain an on-going business relationship and in situations where the parties want to have a degree of control over the negotiation and settlement process.
The mediator will assist the parties to draft a legally enforceable settlement agreement that reflects the terms agreed between them. The Government has embraced mediation as an effective way of resolving disputes and avoid prolonged court action. The process is supported by the Mediation Act 2017 where mediation can be undertaken within or outside the terms of the Act.
UNCITRAL – Model Law on International Commercial Mediation 2018
“An ounce of mediation is worth a pound of arbitration and a ton of litigation!”