Research shows that the majority of people object to mediation to settle their disputes and would prefer to have their day in court. Why do people prefer to opt for the more costly, time consuming and stressful option of litigation? The question, now, really should be why are you not opting for mediation.
The Government certainly believes it is now time to divert civil legal disputes away from court and encourage mediation. A blueprint for major reforms to the civil justice system has been published, which includes mediation being made compulsory for small claims up to the value of £10,000.
What is mediation?
Mediation is a flexible, voluntary, and confidential form of alternative dispute resolution, in which a neutral third party (a ‘mediator’) assists parties to work towards a negotiated settlement acceptable for both sides. The trained mediator will listen to all views, talk to both parties privately and together, and will guide each party through the process and, hopefully, to a settlement!
The Mediation agreement will usually require the parties to treat all discussions and documents as confidential and without prejudice. This means that what is said or written cannot be used in later proceedings if the mediation does not settle (with some limited exceptions).
Advantages of Mediation
The legal costs can be reduced substantially through mediation. Progressing and settling a dispute through court proceedings is particularly expensive. The overall costs can be extremely unpredictable and with barristers’ fees and court fees, the legal costs can soon outweigh the amount in dispute.
Whereas resolving a dispute through mediation is generally a lot cheaper and the costs for a one-day mediation is far less than the cost of Court proceedings.
As well as being significantly cheaper, mediation can also save you considerable time and stress. Court dates are usually scheduled way in advance and in most litigated disputes, you could find yourself waiting years before you get into court. While a mediation date can be arranged within months or even weeks.
Whilst mediation does not guarantee you will resolve the dispute, the fact that no binding decision is made, means that both parties have more control over the solution, and are not forced to accept an outcome in which they are not satisfied with. If you take a matter to Court you are stuck with the decision of the Judge (subject to appeal). We also often find that if a dispute does not settle at a mediation it may well settle shortly afterwards.
If you have any questions regarding meditation or believe that you have a dispute that could be settled considerably cheaper and quicker using mediation and would like some assistance, then please contact a member of our commercial litigation team on 01254 828300.