What is the difference between Commercial and Civil Mediation?

Civil Mediation

Civil mediation is where negotiation is carried out between those in dispute by a professionally and impartially trained mediator. It is a very effective from of alternative dispute resolution and can help parties reach an agreement instead of going to Court in a civil lawsuit battle.

A civil lawsuit is generally a case where the parties are suing for money, such as a personal injury. Civil and commercial mediation is different to family mediation, as it is aims to resolve any disputes that are between two or more parties.

What makes civil mediation different is that it deals with all types of disputes, apart from family matters unless there are exceptional circumstances.

Commercial Mediation

Commercial mediation is a voluntary and flexible form of alternative dispute resolution whereby a neutral third party, often a mediator helps the parties in dispute to work towards reaching a settlement.

For those in dispute, it enables them to settle and agree the terms suitable to both parties. The mediator (unlike a judge or arbitrator) does not reach a decision based on the merits of the case but works towards facilitating an agreement between those involved.

The mediation involves meeting the other party in a confidential and without prejudice manner, meaning that what may be said or written cannot be used at a later stage. This confidentiality can avoid any embarrassing precedents being set which can often arise in court proceedings. 

In the case of a party that is a company or an association, their representative will need to have authority to reach a binding settlement at the mediation.

Civil and Commercial Mediation

Increasingly, parties in dispute are seeking to instruct a skilled mediator to help them settle their civil or commercial dispute.  Mediation can provide a confidential, cost-effective and quick resolution to reach an agreement between the parties involved to achieve a resolution. 

Quite often, many businesses and individuals are caught up in disputes which can last months and in some cases years, resulting in them wasting valuable time and resources.

Mediation can help regain control back to the parties and enable them to decide whether to accept a negotiated settlement before them. This type of settlement can provide terms and conditions which the court may not necessarily be able to provide.

For example, the parties involved could agree as a term of their settlement, a new contractual relationship in lieu of the payment of damages or similar.  This is valuable in situations where, there is a relationship which the parties want to continue.

Do I have to use mediation or another form of Alternative Dispute Resolution?

The Civil and Commercial Courts aim to make a trial as a last resort and may impose financial penalties for those parties who don’t make any effort to settle their agreements

prior to trial either by mediation or another form of alternative dispute resolution.

Do I need a lawyer to use mediation?

It is not necessary to instruct a lawyer in order to use mediation as a means of settling a dispute. However, mediators are not able to provide legal advice.

Mediation has grown to become ever more popular as a preferred method of dispute resolution for businesses. In comparison to litigation, the benefits of mediation can be less stressful, greater resolution satisfaction and stronger post resolution relationships.  

When is the right time to appoint a Mediator?

In most cases, the decision is that of the parties involved when seeking mediation. However, in some employment disputes there may be a written policy or contract that stipulates when mediation needs to occur. A few of the following considerations may impact the question when to mediate: –

• Inability to Communicate: If the parties’ ability to have a productive conversation has been diminished or eliminated, the presence of a mediator may offer the parties a method to have a constructive discussion that would otherwise not be possible.
• Lack of Realistic Understanding: If the parties involved are unwilling to acknowledge the realities caused by the conflict (e.g. a customer won’t pay a bill), mediation may help. A third-party view of the problem may provide a reality check.

• When to mediate: There is no definitive answer to the question of when to mediate. Parties involved need to think about the context of the conflict and whether they are communicating effectively.

Conclusion

If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com.

This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.