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Avoid Costly Business Disputes – Mediate!

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Business disputes detract the business owner away from their prime objective – to make money. Paul Trincas, Head of corporate services at law firm, Charles Lucas & Marshall, highlights the benefits of using mediation to resolve such disputes.

Business disputes, especially if they lead to litigation, can be costly. Courts nowadays, although they cannot compel anyone to attempt to resolve their business dispute, nevertheless expect the parties involved to at least have considered some form of alternative dispute resolution.

Mediation is one of the main forms of alternative dispute resolution – and one of the most successful.

  •  Why use Mediation ?

Mediation is a process of resolving disputes which is a relatively informal procedure and, if successful, will avoid further acrimony, the potential costs of litigation and the risk and uncertainties involved.

  • What is the success rate ?

Statistics show that the use of mediation to resolve business disputes has a high rate of success. Over 80 % of cases have a positive outcome to the parties.

  • What exactly is mediation ?

Mediation is totally outside the court process and involves, in effect, a without prejudice meeting between the parties, facilitated by an appointed and trained mediator, whose task it is to find common ground and “steer” the parties towards a settlement.

  • When to use mediation ?

Mediation can be used at any stage of a dispute. It can be used either before court proceedings or at any stage after court proceedings have commenced.

  • What types of disputes can Mediation be used for ?

Any – that is the beauty of mediation. Trained and experienced mediators are available who have experience in virtually any form of dispute.

  • What are the advantages?

If successful, the main advantages are:

It will bring finality to the dispute and certainty of outcome.

It will avoid either the costs of proceeding to court, or, alternatively, if court proceedings have started, it will avoid having to proceed to trial with all the costs and uncertainties involved.

It is independent of the court process and is a relatively informal procedure.

Although the mediator facilitates settlement, it is actually the parties themselves who come to their own agreement and model the terms of any agreement.

  • What costs are involved ?

These can vary, depending upon the nature of the dispute, the amount involved, the time required and the mediator appointed.

There are many organisations which provide trained and experienced mediators.

The parties will have to pay the mediator’s costs, shared equally.

If the parties have a legal representative and wish to have their legal representative present, then the parties will have to pay for their respective legal advisors. It is normally only in the more complex or larger claims that parties wish their legal representatives to be present.

If the outcome of mediation is successful, then it is time and money well spent.

For further information contact Paul Trincas on 01635 521212 or

Written by Paul Trincas

January 26th, 2012 at 8:42 am