What is Mediation?
Mediation is a voluntary, confidential process by which people involved in conflict are assisted by a neutral third party (the Mediator) to resolve their problems collaboratively. The Mediator never takes sides or imposes solutions, but assists the participants to reach a solution they are content with which is then drawn up into a written agreement (with which they must adhere inasmuch as it will - if properly drafted by the parties’ lawyers - be valid and enforceable as a matter of law).
Mediation improves communication, builds on common ground and is a proven, cost-effective way to resolve conflicts.
Mediation is a successful, cost effective alternative to arbitration or litigation; it normally takes a mere 3-6 weeks from appointment of the Mediator to agreement.
Civil and Commercial Mediation is rapidly being seen around the world as an effective, alternative means of resolving civil and commercial disputes, with many benefits over litigation in court or arbitration presided over by a tribunal of arbitrators or a sole arbitrator.
SUCCESS
The overall success rate of mediation remains high with an aggregate settlement rate of 89% in the U.K. in 2017-2018 with 74% achieving settlement on the mediation day(s) and 15% shortly after mediation.
The success rate of mediation is clearly an important consideration. Parties involved in a dispute would not generally want to embark on a process which is unlikely to lead to a conclusion of the dispute.
SPEED
An essential matter in many cases is that the issues are resolved quickly. Sometimes a situation which is unresolved can and will fester, causing increasing bad feeling. Mediation can be set up very quickly.
It is not just the speed of access to the mediation itself which is important in this context, but also the speed at which a solution can be delivered by mediation – assuming agreement is reached.
Indeed, mediation can lead to significant cost savings and have a beneficial impact by lessening the amount of employees’ time spent on dealing with disputes.
INDEPENDENCE
One of the benefits which mediation can provide is the use of an independent, impartial and neutral person to help the parties to resolve their dispute.
As with any other dispute resolution process, it is essential that the parties have faith in it, its neutrality, fairness and its independence.
Mediators are not “decision-makers”, but nonetheless they are in a position which is not dissimilar in terms of the perceived need for neutrality and independence.
COST
The costs involved in arbitration or litigation are almost invariably far higher than those involved in mediation.
Even where mediation fails, the overall high rate of success and low costs of mediation mean that for companies (and other organisations) that find themselves involved in a number of disputes over time, the costs of any “failed” mediation will be far outweighed by the savings from the successful ones.
Moreover, even where mediation fails, the mediation process can help significantly to narrow the issues between the parties and thus help to reduce the costs ultimately incurred in arbitration or litigation.