What is Mediation?

What is mediation?

Mediation is a process by which Parties seek to resolve conflict and litigation claims without recourse to the Courts.  In mediation, an impartial neutral helps Parties negotiate a settlement, compromising claims in a binding settlement contract.  Mediation is a popular form of Alternative Dispute Resolution (ADR), as a means of resolving disputes without the expense and uncertainty of litigation.  The Courts encourage Parties to try mediation to settle their disputes, rather than litigation.  There is now a real risk of being made liable for the other Party’s costs, where a Party unreasonably refuses to mediate, even if they win on the merits.

Key features of mediation include:

• It is confidential: the mediator does not convey anything a Party shares with her, to the other Party, unless they have specifically given her permission to share it. It is therefore a very safe process;
• It is private: the Parties seek to resolve their conflict without the publicity of Court proceedings. It keeps the issues within the control of the Parties;
• It is flexible: mediation is versatile and adaptable. The process is adjusted to the particular circumstances of the case, and is structured so as to best help resolve conflict on the day;
• It is safe: the Parties use the mediator to exchange ideas or put forward proposals, and no-one is held to anything until everything has been agreed and a settlement agreement is signed; and
• It affords closure: Commercial mediations generally take place in one day. Most mediations settle on the day and litigation is brought to an end, so the Parties achieve certainty and finality.