Mediation in Commercial Disputes
Mediation can offer a way to resolve a commercial dispute without ending the business relationship outright. It does, however, need the right timing and the right preparation. The aim is to create the ground for ending the dispute while taking both parties' interests into account.
When mediation makes sense
If an ongoing commercial relationship exists between the parties, or if the dispute is more about balancing interests than a technical assessment, mediation can be effective. Where one of the parties is not inclined to resolve the matter, the process may come to nothing.
The importance of preparation
Entered into unprepared, mediation becomes merely an intermediate step. A clear basis for the claim, a negotiable range defined in advance and priorities set in order all improve the effectiveness of the process.
Where flexibility can be shown and where no concession can be made should be thought through from the outset.
Running the process
In mediation, the parties produce the solution themselves; the mediator facilitates the process. It is therefore important that the parties maintain a clear and consistent stance during the discussions.
The outcome and what follows
Clarifying the understanding reached at the end of the process in writing prevents a new dispute from arising later. If no agreement is reached, the other legal routes continue to be assessed.
Frequently Asked Questions
It may not be suitable for every dispute. The parties' inclination to resolve the matter and the nature of the dispute are decisive. In some matters, pursuing the judicial route is more appropriate.
The understanding the parties reach at the end of the process must be put in writing and its scope made clear. That prevents a new dispute from arising later.
This content is for general information only and does not constitute legal advice.