Commercial mediation is a process that parties to a dispute can undergo, which is a way of making an attempt to resolve the dispute, the place an independent third party is appointed to behave as a facilitator between them to help them negotiate a settlement dispute. That unbiased third party isn’t a judge. They’re not going to make a choice on the evidence or let you know who’s right and who’s wrong and who wins and who loses. They will aid you see either party’s position and help them come to a settlement.

The process of commercial mediation

It’s a totally voluntary process. You do not have to attend commercial mediation, and when you find yourself at a mediation, you’ll be able to leave 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 proceed at increased costs for both parties, or alternatively, have a mediation at an early stage before any litigation has started in an try to keep away from those costs beginning or running away from the parties at a really early stage.

So, it’s a form of different dispute decision, which is an umbrella time period for a lot of strategies of trying to resolve disputes without having to interact in court proceedings, and it is becoming more and more prevalent in companies’ minds after they’re having a dispute.

Reasonably than, «Let’s have a big argument and spending a number of prices and plenty of time in dealing with the dispute», «How can we get to the top of the dispute in a quicker way and a more price-efficient way?» And commercial mediation is a large part of that and an excellent way of reaching that finish goal in a much more value- and time-efficient manner.

Do I’ve to attend commercial mediation?

Mediation is a voluntary process, however there can be adverse cost 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 could be very prudent, unless there’s an especially good reason why the other party does not wish to mediate, and those reasons could also be that the opposite party’s case doesn’t have any merit or the worth of the case involved can be such that the prices of mediation, even attending a mediation would be disproportionate to the value of the dispute.

However, that aside, you would need to have a fairly good reason not to, not to mediate. Otherwise, a court may make an adverse costs order in opposition to a party who has unreasonably refused to mediate.

So, it is a case really that the court does expect the parties at all times and all levels of a dispute to try to achieve a settlement, not essentially via mediation solely, but the court does anticipate the parties to try and reach a settlement. And mediation, as we now have already mentioned, is an effective way of doing that in a timely and cost-effective manner.

Is the result of commercial mediation legally binding?

The outcome of mediation could be legally binding in very particular 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 those parties to the dispute. Until that has occurred, the outcome of a mediation will not be legally binding, and it would 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 each throughout the course of the mediation, up until the purpose that it is being recorded in writing and signed by the parties. And subsequently, we advise purchasers who are at mediation and have gone by means of the process of reaching a settlement at mediation to attempt their utmost to get that agreement signed on the day of the mediation. And typically, the recording of the agreement can take just as long, if not longer, as to really the parties reaching the agreement at mediation themselves.