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Running a business can be challenging at times. In addition to ensuring that your business keeps progressing, you should also aim to minimise commercial disputes. If this occurs, you must find a way to resolve the dispute and try to avoid court proceedings. Mediation is one way to do so. It is an alternative dispute resolution (ADR) procedure run by a mediator that is flexible, confidential and impartial. This article will explain what makes a good mediator in commercial dispute mediation.
What is the Role of a Mediator in a Commercial Dispute?
A mediator in commercial mediation plays an independent and impartial role in the commercial dispute. Their main focus is to ensure that the alternative dispute resolution (ADR) process runs smoothly. To do so, they facilitate discussion between you and the other party. Therefore, they do not take sides or give viewpoints on the commercial disagreement. They also do not evaluate each party’s case. Rather, a mediator encourages you both to discuss your views and reach a settlement you both agree on. You should not expect a mediator to create or suggest a resolution for your commercial dispute.
This guide outlines how to resolve commercial disputes.
What Makes a Good Mediator in Commercial Dispute Mediation?
If your business chooses commercial mediation to resolve your commercial dispute, you and the other party are responsible for selecting a mediator. As there is no guarantee that commercial mediation will result in a settlement agreement, an effective mediator is crucial to maximising the benefits of mediation. Some important traits a good mediator should have are discussed below.
Adding Clarity to the Mediation Process
One quality that may make a suitable mediator is someone who clarifies the mediation process to you at the outset. This is especially important if it is your first time resolving a commercial dispute via mediation, as being clear about the process will help you communicate more effectively. A good mediator will use the initial meeting, the first part of the mediation process, to do this. They should explain the key aspects of mediation, for example, that it is:
- voluntary;
- confidential;
- neutral; and
- for you and the other commercial party to find a way to resolve the dispute.
Focusing the Commercial Parties’ Minds
An essential skill that makes a good mediator for commercial mediation is being able to focus the parties’ minds on the dispute. This is key during the second stage of the mediation process when the mediator has private meetings with each commercial party. Your commercial mediator may focus your mind by, for example:
- reminding you of the expense of commercial litigation;
- explaining the risks of commercial litigation; and
- highlighting the importance and benefits of maintaining a good working relationship with the other party.
Understanding Your Position
During your private meetings with your commercial mediator, they must help you understand the reality of your dispute. By doing this, a good mediator will help you understand where your argument stands. Understanding your position involves the mediator having a thorough discussion about your case, where you should communicate your strengths and concerns in your argument. A good mediator will impartially test the effectiveness of these points so you understand your likelihood of success in the commercial dispute.
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Key Takeaways
Meditation is an alternative dispute resolution (ADR) method for resolving commercial disputes. The role of the mediator in this process is to remain neutral and independent, facilitating discussions with you and the other party. A good mediator will properly help you reach a settlement agreement. To do this, they should possess qualities such as:
- providing clarity at the outset on what the mediation process entails;
- focusing your and the other commercial parties’ minds during the mediation process; and
- helping you to understand your position.
If you need help understanding what makes a good mediator in commercial dispute mediation in the UK, LegalVision’s experienced disputes lawyers 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.
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