4 Jan 2012

Rise in demand for mediation services

More businesses are using mediation services to resolve their disputes instead of taking matters to Court, according to commercial litigation experts at Shakespeares. In doing so, they are minimising costs and avoiding a significant drain on management time.

In the past year, use of alternative forms of dispute resolution, including specialist services such as ombudsman schemes, expert adjudication and arbitration has increased significantly. One of the most popular ways of resolving disputes is by way of mediation, which is a form of structured negotiation involving a neutral mediator. Recent Ministry of Justice statistics show that civil proceedings are down 9% in 2010-2011 compared to the previous year and that mediation can amount to a quarter of the cost of bringing the matter to court and take only a quarter of the time.

Demand is expected to continue to rise as small and medium-sized businesses seek to avoid the costs and delay associated with commercial litigation.

Cathryn Selby, commercial litigation partner at Shakespeares, said:

“Managing disputes can be a significant drain on management time as well as incurring significant legal costs if matters are pursued through the courts and this is encouraging businesses to take an alternative course of action. Many businesses are also put off by the length of time it takes to bring a claim to court – from the date of issuing the claim it can take anything up to three years to achieve a final result at trial.

“With their greater use, alternative dispute forums have become more efficient and easy to use.”

An alternative to litigation

Mediation as an alternative to litigation has been actively encouraged by the courts since 1999 and is generally recognised to be quicker, more pro-active, flexible and constructive. Importantly, it is also a confidential process between the two parties and if handled well, it can sometimes help to protect rather than destroy commercial relationships.

Cathryn Selby added:

“For businesses that find themselves in a dispute, mediation will more often than not deliver the best possible outcome. While courts control the litigation process, the parties involved in the dispute have a much higher degree of control during a mediation process and this can help to bring things to a conclusion more quickly and more constructively.

“However, advice is needed as not every case is suitable for mediation and there are strategic considerations about the timing of mediations to achieve the best results.”

Questions?

For furter information please contact Cathyrn Selby on 0115 945 4611 or email cathryn.selby@shakespeares.co.uk.