Alternative Dispute Resolution - Mediation

Mediation is a method of alternative dispute resolution which has gained traction and popularity since the late 1990s. As a process of resolving disputes, and like other forms of dispute resolution, it has its strengths and weaknesses.

Application - Commercial Contracts

As commercial and business lawyers, we find that mediation is a realistic and sensible option for alternative dispute resolution, to attempt to resolve business disagreements arising from contracts of supply, shareholders agreements, corporate disputes and joint ventures.

Commercial contracts often contain mediation clauses whereby the parties agree to participate in a formal mediation process prior to resorting to litigation. Whether or not a contract does contain a mediation clause does not prevent disputing parties from agreeing to engage in mediation process. Also, this is not to say that parties that have a dispute who do not have a contractual relationship cannot participate in mediation to resolve their disputes.

Mediation is a voluntary process. It is not a form of resolution which can force a result. Court based dispute resolution in England requires disputing parties to consider mediation as an option to avert continuation of the dispute through court to the trial, where the rights of the parties are decided by a judge.

Strengths of Alternative Dispute Resolution

The strengths of mediation as a form of alternative dispute resolution include:

1. can bring parties together to better understand their differences and the width of those differences;
2. avoid legal costs to force a resolution through arbitration or the court system;
3. disputes may be resolved in a short time, such as one day. The benefit is that certainty in the compromise is reached and the disputing parties are able to move on and put their disputes behind them;
4. relationships may be able to be preserved; this is more likely given the contentious nature of arbitration and litigation;
5. what is said in the mediation is confidential;
6. the parties' rights are preserved to the extent that an agreement to compromise the disputes does not resolve the disputes. if no agreement results from the mediation, the parties walk away with all of their rights.

Weaknesses

Attendance at a mediation may be able to be forced, but an active willingness to make the most of the opportunity cannot. Accordingly, a different mindset is should be adopted by parties attending and participating in a mediation. Participation may be difficult where for instance intellectual property rights continue to be infringed or contractual rights have been breached causing one of the parties significant loss of business and profit.

Our Services

Our commercial lawyers have successfully assisted our clients with alternative dispute resolution methods averting the need to advance resolution of disputes through arbitration or litigation. The process is suited to most types of disputes, provided that the parties are willing to compromise on disputes and explore commercial solutions.

London Business Solicitors & Lawyers

Our Solicitors in London assist businesses in the UK and internationally to create options, achieve realistic and attainable goals, and providing guidance to assist decision-making in a commercial context.

For more information, legal advice or to find out more about the legal services we provide, call 020 7353 1770 or contact us online.