You might have heard of the term “commercial mediation” being banded around during the course of your involvement with your business.
In a nutshell, commercial mediation refers to the process used by solicitors and commercial entities such as businesses to assist with the negotiation or mediation of any disputes and disagreements.
Should you consider Commercial Mediation?
Despite what you may think, there aren’t many guarantees in life. Just because one party believes something to be fact does not necessarily mean that another party will also agree with what they are saying.
Sometimes issues over land, contracts or even rights can be disputed between two parties, and this can result in a huge rift being put between the two sides. In these cases, a huge deadlock can ensue, and the only way forward is to opt for commercial mediation.
Here are some of the benefits to using commercial mediation to resolve issues:
- Success Rate
When two parties are deadlocked, it can often help to have a third, independent party to mediate between the two sides. As a result, there is often a high rate of success for resolving any commercial disputes;
Many parties take opposing sides to court, which as you will know costs a lot of money for both parties concerned. Commercial mediation is more cost-effective, and is often an attractive option in comparison;
- Quicker Resolutions
Unlike court cases which can potentially take years to settle, commercial mediation cases aim to resolve any problems as quickly (and cheaply) as possible for everyone involved;
Court cases are, for the most part, very public affairs. Commercial mediation is dealt with behind closed doors;
- Better Outcomes
Sometimes the ruling of a court case might not be a great outcome for either or both sides. Commercial mediation aims to give both parties a fair deal when it comes to resolving any issues.
What’s Involved with Commercial Mediation?
If you and another party have a dispute which is not showing any signs of resolution any time soon, then commercial mediation might be a good option for you both. Before the process can begin, both sides must agree to take part in it.
Once the other party agrees to commercial mediation, the next step is to find a law firm that specialises in commercial mediation. When a solicitor is chosen, a date and time is agreed to by both parties along with any fees, which in most cases are equally shared by both sides.
When the session commences, the mediator explains to both sides the goals and rules of what happens next, and how they expect both sides to agree to a certain etiquette within the meeting (i.e. no swearing or violent behaviour).
Both parties are invited to put their side of the story forward and explain the reasoning behind their disputes, after which the mediator will compile a list of agreeable facts and suggest some resolutions to the matter.
Once this is done, he or she will put forward these suggestions and work with both sides to come up with a mutually agreeable outcome. It should be noted that any agreed-upon resolutions are not legally binding, but such arbitration does have a high success rate.