Frequently asked questions about commercial disputes

Here are some frequently asked questions when considering mediation for commercial disputes.

What is a commercial dispute?
Any dispute in which an amount of money, goods or services is claimed by one party can be considered to be a commercial dispute. This type of dispute would normally be settled through the Small Claims Court or for higher value disputes, through more protracted court proceedings.

How does mediation address commercial disputes?
Mediators are trained and experienced in helping disputing parties to negotiate productively. Your mediator works impartially and encourages the parties in dispute to put their heads together and arrive at a commercial settlement that is satisfactory to all parties. Mediators do not provide legal advice or try to establish who is right or wrong. Their role is to help all parties achieve a pragmatic and workable outcome.

Are mediators legal professionals?
Not necessarily. Most mediators on the UK Mediation panel are not solicitors, but have an in-depth knowledge and a wealth of experience on how to reach settlements to disputes. We recommend that you gain independent legal advice in order to ensure that you know the range of settlement options, and that you can fully assess the risk of going to court. Mediation can then proceed in the light of that information.

Do I need legal representation?
Mediation can take place with or without legal representation. If you choose not to bring your solicitor along on the mediation day, you may want him or her to be available on the telephone for advice at crucial points in the mediation. Alternatively, if your solicitor accompanies you, he or she can provide an ongoing 'reality check' throughout the day, ensuring that the settlement you reach is a realistic one.

Will the settlement be legally binding?
Yes. The mediation will conclude with both parties and their representatives if they have been involved, signing a binding 'Memorandum of Agreement', which is enforceable in court.

Why is mediation a good idea?
Although many people in dispute will often break off negotiations with a "see you in court", the option of legal action often makes no commercial sense. Both businesses and individuals can often find that the expense, stress and delay of court action outweigh the benefit gained by the settlement that is finally reached. Furthermore, the disputing parties are in ultimate control of the mediation outcomes, and cannot be required to settle unfavourably. Mediation allows you to get on with your life and your business without having to endure unnecessary legal action.

How long does mediation take?
Mediation can conclude many disputes within a single day, and at a fraction of the cost of court action. Most commercial mediation cases can be settled in a single day. A number of hours will be allocated to the case in advance, and everyone will be encouraged to try and reach a settlement within that time.

How much does mediation cost?
A four-hour mediation costs £375 + VAT per party, which includes a further two hours of reading and preparation time on behalf of the mediator. A longer, more difficult mediation of eight hours is charged at £825 + VAT per party. Should the mediation run over time, additional hours are charged pro rata following the mediation.

What if mediation fails?
Mediation is deemed to be "without prejudice" and strictly confidential. Unless the law requires that the mediator disclose any information, all proceedings are kept entirely private, and no notes are retained by the mediator. In the unlikely event that you do not reach a settlement, you can still take your case to court if you need to. However, mediation is successful in settling around 80% of cases, so that no court proceedings are necessary.

If your question is not listed here, please contact us and we will be pleased to answer any queries or concerns you may have.