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Resolving
Disputes Cost-Effectively
Over the last
ten years or thereabouts, the practice of adopting mediation and
Alternative Dispute Resolution (ADR) has developed rapidly in the
United Kingdom . Approval for mediation/ADR has been expressed by
senior members of the judiciary as well as in various reviews that
have been carried out by the Law Society.
Although mediation
has proved to work successfully in matrimonial disputes, an increasing
number of civil disputes are now being settled by way of mediation
and ADR. Civil Litigation lawyers are now encouraged mire than ever
before to use mediation before trials unless they are able to provide
specific reasons for exemption.
It is clear
that some civil cases will inevitably proceed towards a final hearing
or trial, whilst other cases will be more suitable for settlement
by agreement. Settlement of litigation out of court is already an
essential feature of our Civil Justice system. It is often the case
that as parties approach the final trial, they begin to express
a preference foe settlement out of court. This usually occurs at
a stage in the litigation when both parties have already incurred
substantial legal costs.
Accordingly,
mediation allows parties to explore settlement at an earlier stage
in the litigation and puts in place procedures that can assist in
resolving cases in a more pragmatic and cost-effective manner.
Mediation offers
a more structured negotiating forum to parties compared with traditional
out of court settlement negotiations. For instance, high value civil/commercial
cases will benefit from having the involvement of a mediator who
can through effective mediation tactics tease out settlements
from difficult negotiations. In the normal course of events,
any disagreement between parties would result in a flurry of correspondence,
threatening termination of a relationship or contract followed by
legal action. The added advantage of mediation is of course that
they will reach a speedy settlement reflecting commercial and personal
interests as well as engaging in a cost-saving exercise. This is
even more the case where parties need to preserve their business
relationships.
It has however
been the case that parties are reluctant to become involved in mediation
even though their case could be amenable to formal mediation. Getting
parties on board is usually the difficult task. It has often been
the case that one party refuses to agree to use mediation because
for example, they assume that it implies some form of award or procedure
to split the difference. Furthermore, it is also the case that parties
are in fear of the unknown and believe that their attempts to mediate
will be perceived as a sign of weakness.
For reasons
such as these there has in the past been a limited use for mediation
within civil litigation. It is imperative however that parties consider
the appropriateness of using mediation in their case at the outset.
These procedures are designed to ensure that an effective forum
can be put in place where lawyers and clients want to actively have
a go at settlement or even issue refinement at the earliest feasible
stage.
This is also
the logic that is applied to most commercial contracts which contain
ADR clauses to direct negotiations in amore objective third party
forum. Mediation is a positive step that parties can take to resolve
a dispute that will inevitably have financial implications for them
both.
A successful
mediation conducted by a trained mediator and involving committed
parties can lead to a win-win situation, where both
parties come away from the dispute with the feeling that they have
achieved something. What is clear however is that many individuals
are missing out on a valuable mechanism that can be used to their
advantage to avoid lengthy and expensive litigation.
Gurpreet Birdi
Chadwick
Lawrence Solicitors
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