If clients fail to resolve the dispute when negotiating with a counterparty, we suggest mediation.
What is mediation?
If talks collapse aimed at resolving a dispute with a third party, we suggest mediation as the next step.
This is an interactive process for resolution of conflict in which an independent and impartial third party – a mediator assisting the disputing parties to understand one another – is brought in to identify the interests involved and seek a solution acceptable to said parties.
A mediator is an expert in communication and resolving conflict, whose task is to motivate the parties to find a solution to their dispute. A mediator gauges the opinions of those involved, then helps them to determine possible solutions prior to structuring the information that is forthcoming with the aim of reaching an agreement. The mediator is always impartial and independent.
According to global statistics, 75% of disputes before a mediator are settled by agreement. This is usually achieved during one to two meetings with a mediator lasting 3 hours.
The goal of the mediator:
- to get the disputing parties to the negotiation table and foster the ability and willingness for communication
- to lead the parties to an agreement, one comprising mutually acceptable solutions in compliance with legislation
Under what circumstance is mediation suitable?
- if the third party does not respond to an attempt to establish contact, the mediation centre contacts them and offers them conflict resolution by mediation;
- if the dispute pertains to facts that are confidential, such mediation is undertaken in a private and confidential manner, thereby encouraging the parties to reach an agreement;
- if the parties wish or are under pressure to cooperate in a future time frame, mediation permits the parties to control the process and arrive at a solution; an agreement of this type can foster communication between them in the future;
- when the costs of resolving a dispute in a courtroom are far higher than the amount of the claim, or they are not viable for another reason; mediation usually entails lower costs;
- when attempt at resolution of a dispute has been drawn out or the period preceding a court case is considered too long; i.e. it would appear that the dispute will drag on and never come to an end; mediation is usually a quicker means of arriving at a solution with agreement of all the parties;
- when there are numerous parties to the dispute or other disputes exist, which complicates efforts to resolve the matter(s) in court; here, mediation facilitates a comprehensive solution that addresses multiple aspects of said conflict, providing an effective method for handling disputes between a multitude of parties.