Commercial mediation is a process that parties to a dispute can go through, which is a way of attempting to resolve the dispute, the place an unbiased third party is appointed to behave 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 decision on the proof or tell you who’s right and who’s mistaken and who wins and who loses. They will aid you see either party’s position and assist them come to a settlement.
The process of commercial mediation
It’s a completely voluntary process. You should not have to attend commercial mediation, and if you end up at a mediation, you’ll be able to depart at any time. However it is a good opportunity to have a commercial dispute case settled without the necessity for the proceedings to either, if they have already started, proceed and continue at elevated prices for each parties, or alternatively, have a mediation at an early stage before any litigation has started in an try to avoid these costs starting or running away from the parties at a very early stage.
So, it’s a form of other dispute decision, which is an umbrella time period for many methods of attempting to resolve disputes without having to engage in court proceedings, and it is becoming more and more prevalent in businesses’ minds when they’re having a dispute.
Relatively than, “Let’s have a big argument and spending lots of prices and plenty of time in dealing with the dispute”, “How can we get to the tip of the dispute in a quicker way and a more value-effective way?” And commercial mediation is a big part of that and a superb way of reaching that finish goal in a much more value- and time-environment friendly manner.
Do I’ve to attend commercial mediation?
Mediation is a voluntary process, but there will be adverse cost penalties 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 an extremely good reason why the opposite party does not want to mediate, and people reasons may be that the opposite party’s case doesn’t have any merit or the worth of the case involved would be such that the prices of mediation, even attending a mediation could be disproportionate to the worth of the dispute.
However, that aside, you would need to have a fairly good reason to not, not to mediate. Otherwise, a court might 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 at all times and all stages of a dispute to aim to succeed in a settlement, not necessarily through mediation exclusively, however the court does anticipate the parties to attempt to reach a settlement. And mediation, as we have already discussed, is an effective way of doing that in a well timed and price-efficient manner.
Is the outcome of commercial mediation legally binding?
The result of mediation would be legally binding in very specific circumstances, and that is 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 happened, the result 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 and change the agreement for every throughout the course of the mediation, up until the point that it is being recorded in writing and signed by the parties. And due to this fact, we advise clients who are at mediation and have gone by means 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 generally, the recording of the agreement can take just as lengthy, if not longer, as to actually the parties reaching the agreement at mediation themselves.