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Benefits of mediating a dispute in the UK

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People often avoid legal disputes as they are time consuming and expensive. However, there are other options for resolving a dispute. According to the latest Mediation Audit of the Centre for Effective Dispute Resolution (“CEDR”), mediations in England and Wales have seen accelerated and steady growth in recent years.

What is mediation?

Mediation is a voluntary and confidential process in which an impartial and independent third party, the mediator, assists the parties in dispute to bring the matter to a close by way of a settlement agreement. The mediator facilitates open discussion and maintains neutrality throughout this process, without imposing any particular outcome.

Should the mediator be successful in assisting the parties to reach a resolution, a settlement agreement will be drawn up and signed by both parties. Once signed, the agreement becomes binding between the parties, and is enforceable as a contract.

Advantages of mediation

Mediation can be an extremely quick way of resolving the matter, as disputes can generally be mediated within one day. The speed by which resolution can be reached enables individuals or businesses to quickly get back to the day-to-day running of their lives and businesses.

The overall success rate of civil and commercial mediations is very high, with an aggregate settlement rate of 93% according to the ninth Mediation Audit of CEDR.

Another clear advantage of mediations is cost-effectiveness. The participants generally save a substantial amount of money, as a mediator’s fee tends to be only a fraction of the amount of legal costs a litigant might ultimately be liable for. Avoiding legal fees and minimising interruption to a party’s business allows key members of staff to focus on the day-to-day running of the business rather than the dispute.

Mediation offers a clear method of communication that enables the parties to clear up any misunderstandings that might have formed since the dispute. During a mediation, the parties might be engaged in discussions for several hours, allowing a greater degree of understanding and empathy between them.

Mediations are known to be very flexible, and may be conducted in person, by telephone or virtually. Those who choose to mediate do so voluntarily, and either party can leave the mediation at any time. Parties can speak between themselves or speak solely with the mediator in confidence. This flexibility allows sensitive information to be discussed without the other participant’s knowledge, with the mediator disclosing to the other party only that to which express permission has been given. Further, a settlement can be agreed on any terms, even those that the court would have no power to order.

The non-adversarial nature of mediations is known to enable parties to maintain their previous personal or business relationship, and ensures that details of the dispute do not reach the public domain. As the dispute is resolved by agreement, enforcement of the settlement is also more straightforward and less complex than judgments of the court.

Participating in mediation also helps safeguard the position of the parties, in the event that litigation is unavoidable, as it demonstrates compliance with the Pre-action Protocol. According to paragraph 8 of the Protocol, “parties should consider whether negotiation or some other form of ADR procedure might enable them to settle the matter without starting proceedings”. It is important to note that an unreasonable refusal to mediate is a high-risk strategy, and in some circumstances, may entail significant cost consequences. As per paragraph 11 of the Protocol, “a party’s silence in response to an invitation to participate or a refusal to participate in ADR might be considered unreasonable by the court and could lead to the court ordering that party to pay additional court costs”.

How we can help

Mediation offers many advantages to parties seeking to settle their disputes, from a cost, speed, flexibility and business efficacy perspective. Our firm can assist by offering a fixed fee mediation service, and can also advise clients on all aspects of the process.

The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact us via email at london@kyprianou.com or telephone (+44) 020 7877 0033.