Professional business mediation

How does mediation work?

Initiation: Mediation begins when the parties involved agree to resolve their dispute through mediation. They may be referred to mediation by a court; as a consequence of a contractual stipulation; or decide on it independently.

Selection of a Mediator: The parties agree on a neutral mediator, or one may be assigned by an organization or a court. The mediator is trained in conflict resolution but does not take sides.

Opening Statements: Each party typically has the opportunity to present their view of the dispute without interruption. This helps set the tone for open communication.

Negotiation and Dialogue: The mediator facilitates discussions between the parties, encouraging them to express their concerns and needs. The mediator might ask questions, clarify points, and help both sides explore possible solutions.

Private Sessions (Caucuses): Sometimes, the mediator may meet with each party separately (called a caucus) to explore sensitive issues and explore if there is room for compromise or understanding that can’t be discussed openly.

Agreement: If the parties reach a resolution, the mediator will help draft a written agreement that outlines the terms. This agreement is binding upon the parties upon signature.

When is mediation suitable?

Mediation is particularly effective when:

Speed and Cost are Concerns: Mediation can often resolve disputes more quickly and at a lower cost than going through litigation or arbitration. This makes it an attractive option for those looking for an efficient resolution.

Parties are Willing to Cooperate: Mediation works best when both parties are willing to engage in dialogue and compromise. It’s a collaborative process, so both sides need to be open to finding a solution.

The Dispute is Not Too Complex: Mediation is often used for resolving disputes related to business disagreements. While mediation can address complex issues, it might not be ideal for highly technical or legal disputes where formal legal expertise is necessary.

Confidentiality is Important: Mediation is typically private, meaning discussions during the mediation process cannot be used later in court. This can make it attractive to parties who wish to keep their dispute and any resolution thereto confidential.

Parties Want to Preserve Relationships: Mediation helps preserve relationships because the process is cooperative and focuses on mutual benefits. It’s useful when the parties need to continue working together, such as in (long term) business partnerships.

When mediation might not be suitable

Imbalance of Power: If there is a significant power imbalance between the parties, mediation may not be appropriate because of power dynamics in bringing about a solution to the conflict.

Unwillingness to Compromise: If one or both parties are not open to negotiation or compromise, mediation may not be effective.

Need for Legal Precedent or Enforcement: In cases where the dispute requires a legal ruling or the enforcement of rights under the law (e.g., criminal fraud cases or disputes requiring a clear legal decision), mediation might not provide the resolution needed.