Mediators in Dispute Resolution: Roles and Considerations 

If you fall into a commercial dispute when you run your business, you should try to resolve it as soon as possible. This prevents it from escalating and turning into potential court proceedings between the disputing parties, which can be costly and time-consuming. One way to do this is to consider alternative dispute resolution (ADR), such as mediation. The mediation process is a voluntary and informal process of helping you and the other party resolve your conflict. Notably, the mediator will facilitate the discussion. This article will explain the mediator’s role in dispute resolution and key considerations when choosing one.

What is the Role of a Mediator in Dispute Resolution?

In mediation, the mediator acts as a neutral and impartial third party who assists the parties in reconciling the dispute. They will help the parties better understand their argument but not make a decision for them.

Importantly, the role of the mediator can also depend on the type of mediation you are using. The most common type is facilitative mediation. Here, the mediator is not interested in deciding the case based on each party’s argument but instead works with you and the other party to reach an agreed resolution. Another type of mediation is evaluative mediation. Although less popular than facilitative mediation, if you select this as your mediation, your mediator will evaluate the strengths and weaknesses of each party’s argument.

What Should I Consider When Choosing a Mediator?

If you choose mediation to resolve your commercial dispute, it is usually up to you and the other party to choose a mediator. Therefore, it is helpful for you as a business owner to understand what selection criteria you should apply. 

Firstly, you should consider where you wish the mediation to occur. It must be convenient for you, the other party, and the mediator. This may, therefore, affect your choice of mediator. 

Also, you may consider a mediator’s professional experience, as your dispute may be specific to a particular industry. As a result, their knowledge and ability to understand the nature of your commercial dispute should play a key role in which mediator you choose. 

Another helpful step to take is to actually meet your potential mediator prior to mediation. This provides you with an idea of their communication style and personality, which will likely affect how they mediate.

Lastly, the mediator’s impartiality is a pivotal consideration. As mediators must be neutral, looking out for potential conflicts of interest regarding your commercial dispute is essential. 

Costs of Mediators

The cost of a potential mediator is a key matter you should consider early on when selecting one. When resolving a dispute, your business needs to keep costs at a minimum and ensure that the mediator is cost-effective. Usually, you and the other party will each pay half of the mediator’s fee. Mediators may charge hourly, fixed fees or a combination of both. For example, they may charge a fixed fee on the basis that the mediation takes half or a full day. However, if the mediation runs long into the night, they may charge for the additional time on an hourly basis. When considering costs, there are also other factors to consider, such as:

• if you have to pay the mediator’s expenses;
• whether the mediator requires you to pay for work they carry out before mediation or following it; and 
• if the mediator charges cancellation fees.

Guide to Resolving UK Business Disputes

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Key Takeaways

If you find yourself a party to a commercial dispute, you may choose mediation. This alternative dispute resolution method requires a mediator who acts as an impartial third party to help you resolve the matter. Therefore, the role of the mediator is not to make a decision. However, depending on the type of mediation, they will either help facilitate a decision or evaluate your arguments. It is usually up to the parties to a commercial dispute to choose their mediator. When doing so, some key factors to consider are:

• the mediator’s costs, personality and professional experience;
• the mediation location; and
• potential conflicts of interest between you and the mediator. 

If you need help understanding the role of mediators in dispute resolution and legal considerations in the UK, LegalVision’s experienced disputes and litigation solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.