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Home » Services » Mediation » The Principals of Mediation

PBC Business Recovery and Insolvency Offices
PBC Business Recovery and Insolvency

The Principals of Mediation

Why mediation?

Rather than answering that question directly, it is best to reflect the views of the court.

In the recent decision of DSN v Blackpool Football Club Limited where, in awarding adverse costs against the defendant, the judge said,

The reasons given for refusing to engage in mediation were inadequate.  They were, simply, and repeatedly, that the Defendant “continues to believe that it has a strong defence”. No defence, however strong, by itself justifies a failure to engage in any kind of alternative dispute resolution.” 

The same view has been adopted by the court in terms of a claim being pursued, irrespective of the perceived strength.

Equally, the court may suspend your litigation and direct that both parties agree to negotiate settlement by using mediation.

Alternatively, negotiating settlement of a dispute maybe a contractual requirement.

 

What is mediation?

Mediation is a form of Alternative Dispute Resolution.  It is a flexible process conducted confidentially in which a neutral person (the Mediator) actively assists the parties in working towards a negotiated agreement of a dispute or difference, with the parties in ultimate control of the decision to settle and the terms of resolution.

 

What are the benefits of mediation?

The benefits of mediation are primarily:

  1. It avoids the potentially substantial costs incurred with an on-going litigation.
  2. The risks and uncertainty of court intervention is avoided.
  3. A resolution of the dispute is achieved far quicker than litigating through the court.
  4. Approximately 85% of disputes negotiated via mediation settle.
  5. It has been proven settlement by mediation may help restore/preserve relationships.