Mediation is one of the most widely used forms of alternative dispute resolution (ADR), offering parties an opportunity to resolve disputes without the cost, delay and uncertainty of court proceedings. It is a confidential and flexible process designed to help parties reach a mutually acceptable settlement with the assistance of an independent mediator.
What Is Mediation?
Mediation involves an independent third party, known as a mediator, who helps the parties explore potential solutions and negotiate a settlement. The mediator remains impartial throughout the process and cannot impose a decision on either party. Any settlement reached is voluntary and can be formalised in a legally binding agreement.
How Does Mediation Work?
A mediation typically begins with each party presenting its position before moving into private discussions facilitated by the mediator. The mediator works with both sides to identify areas of agreement, narrow the issues in dispute and encourage constructive negotiations aimed at resolving the matter.
Mediations can last from a few hours to several days depending on the complexity of the dispute and can often achieve resolutions that would not be available through traditional litigation.
When Should Mediation Be Considered?
Mediation can take place before legal proceedings are issued or after court proceedings have begun. In many cases, resolving disputes at an early stage can save considerable legal costs and management time while preserving important business or personal relationships.
Courts increasingly encourage parties to consider mediation and other forms of ADR, and there can be cost consequences for parties who unreasonably refuse to engage in the process.
Benefits of Mediation
Key advantages of mediation include:
- Confidentiality.
- Greater control over the outcome.
- Faster resolution of disputes.
- Reduced legal costs.
- Preservation of business and personal relationships.
- Flexibility in finding commercially or personally acceptable solutions.
Is Mediation Compulsory?
In Churchill v Merthyr Tydfil County Borough Council, the Court of Appeal ruled that a court could lawfully order the parties to engage in a non-court-based dispute resolution process provided that the order made:-
- Did not impair the very essence of the claimant’s right to proceed to a judicial hearing;, and
- Is proportionate to achieving the legitimate aim of settling the dispute fairly, quickly and at reasonable cost.
The Court of Appeal declined to ‘lay down fixed principles as to what will be relevant to determining the questions of a stay of proceedings or an order that the parties engage in a non-court-based dispute resolution process’. Therefore, the court declined to make an order for a stay of these proceedings.
How We Can Help
Our dispute resolution team has extensive experience advising clients on ADR and mediation. For more information info@tgbaynes.com or 020 8301 7777.