Costly to businesses, commercial disputes are best avoided, particularly in the present uncertain economic climate. Such disputes can be detrimental to businesses in many different ways:
- the cost of management time in dealing with the dispute
- the cost of employee time in giving evidence
- lawyers, experts and court fees
- the uncertainty of what a court’s decision may be
- the worry of the matter not being resolved and the risk if you lose your case
Mediation attempts to resolve disputes using a third party to facilitate a negotiated settlement. The mediator does not make any decision and does not advise on the merits of the case, although he or she will challenge a party’s case.
There are many benefits to mediation:
- cost effective (compared to full court proceedings)
- the process is quick
- the settlement can agree things that a court cannot order
- it is without prejudice and confidential
- the parties have control over the settlement terms
- if the dispute is not settled you have an opportunity to glean useful information about the other party’s position and their case
Mediation has a high rate of success and should be considered by anyone with a commercial dispute. The reality is that you are unlikely to come away with everything you want, but you are likely to achieve a settlement that you can live with.
For advice on any aspect of commercial disputes and/or mediation speak to Peter Allen on 01245 453813 or peter.allen@birkettlong.co.uk
