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COMMERCIAL MEDIATION

Mediation in business disputes set to double

Attempts to resolve commercial disputes by mediation are set to double over the next year as businesses seek a cheaper and faster alternative to litigation, according to a new survey by the Irish Commercial Mediation Association (ICMA).

The key advantages of mediation were found to be cost (saving up to 70% on litigation), speed, control and preservation of business relationships. The survey found that mediation was most widely used in family businesses and construction disputes followed by partnership conflicts and property issues.

 

Although commercial mediation is still relatively new in Ireland, there was a significant increase in the number of cases last year. The trend seems set to accelerate in the future with a greater emphasis on pre-trial mediation by the Commercial Court.

 

Mediation can prove particularly useful in the following types of commercial disputes:

  • Shareholder and/or Board member relationships
  • Commercial agreements
  • Contractual obligations
  • Customer service
  • Professional / Medical negligence
  • Personal Injury Claim

Process

The typical commercial mediation process will involve a number of steps:

  1. Pre-mediation meetings, telephone conversations and correspondence with each party. This enables the mediator to obtain a history of the conflict to date and gain an understanding of the perspective of each party. The Mediator will also explain the process and ascertain the willingness and suitability of the parties to mediate.


  2. A signed agreement to mediate.

  3. Submission and by agreement, circulation of all necessary documentation and position statements.

  4. An initial joint meeting at which the positions of both parties are outlined. This is then followed by separate shuttle mediation sessions. These typically take place over a day with agreed starting and finishing times.

  5. The mediation usually takes place over one day. However more complex issues may require a longer period of mediation to enable agreement to be reached.

  6. A written agreement is drawn up and signed by all parties. It is estimated that 80% of all mediations end in agreement.