Mediation is an alternative dispute resolution procedure, in which the parties are guided by the mediator with the aim to find a solution to their conflict. It is an option that offers a flexible, self-determined approach to all aspects of the conflict, in contrast to the court proceedings and arbitration which are formalised.
Voluntarily choosing to take responsibility to resolve the dispute would benefit both parties as it will enable to each of them to feel more comfortable. There are numerous further benefits for the parties who choose this dispute resolution option;
- Quicker than general litigation.
- Cost effective - more economical due to the uncertain issues surrounding the recognition and enforcement of judgements in civil and commercial matters along with the judicial assistance in document delivery and taking of evidence that general litigation brings.
- Protective against legal costs (in the UK) when a valid offer to mediate is rendered.
- Confidential - benefiting the relationship and reputation of the parties.
- Balances the power, making both parties feel more comfortable especially in cross-border disputes.
- Negotiation of payment plans could keep the businesses cash flow healthy in necessary circumstances.