The Benefits of Commercial Mediation
Commercial Mediation has been steadily gaining credibility, largely because of its track record on getting results. According to the eight biennial audit undertaken by The Centre for Effective Dispute Resolution (CEDR), 74% of mediated disputes reach a settlement on the day of mediation with a further 15% reaching a settlement shortly after mediation.
These statistics have remained fairly constant since these audits began, even though the number of mediated cases is increasing, as is the number of “mandatory mediation cases”.
In a personal environment, one of the biggest benefits of going down the mediation route is the fact that mediators are skilled at taking the “emotional sting” out of a situation.
While this can still be useful in the commercial environment, the main benefits here tend to be of a different nature.
Commercial mediators generally charge less than lawyers
Sometimes going down the “low-cost route” can work out false economy but this is unlikely to be the case with mediation. They are not “cut-price lawyers” nor do they claim to be.
They are experts in getting people working collaboratively towards a solution, which can then be translated into a legally-binding document if so desired.
In a commercial environment, it is very likely that lawyers will have to get involved at some point and may be present during some parts of the mediation process, but their (expensive) time, will be minimized.
Mediation can keep sensitive matters out of public court
If you can’t reach a settlement out of court, then your only other options are to give up or to reach a settlement in court.
The former will be of no benefit to you and the latter may carry a cost beyond the legal fees you may end up paying in that, with a few exceptions, information disclosed as part of a court case is often made available not just to the other party but also to the public as a whole, which may allow your competitors and/or the press to learn about sensitive topics you would have preferred not to discuss.
Mediation can offer more flexibility than legal process
Obviously, everything to do with the mediation process must be on a solid legal footing; however, mediation still offers massively more scope for flexibility right from start to finish.
For example, if you are following a strict, legal process then you will have to work with the availability of the members of the legal profession and while you may be able to persuade some members of it to work out of hours, albeit at a price, it is in the highest degree unlikely that you’ll get an out-of-hours court hearing.
In fact, it can be a challenge to get even regular court time and if anything happens to your allocated slot, e.g. someone necessary is ill, and then you will have to wait even longer for your eventual resolution.
Similarly, when it comes to the actual settlement, courts have to work within the powers which they are given, whereas mediators can have a much broader range of suggestions at their disposal.
Get in Touch
If you require any further specific information, in regards to Commercial Mediation please contact our mediation specialists who will be happy to answer any of your questions. Get in touch via phone, email or through our contact form.