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What is Mediation and how does it work
Mediation is a process that facilitates a resolution through open and constructive dialogue between disputing parties. It is the parties themselves who construct the terms and conditions of settlement, with the mediator facilitating the process. Each party’s legal representative would be entitled to attend and actively partake in the mediation, allowing for the parties to take legal advice throughout the process.
There are different stages to the mediation process; each brings with it a specific characteristic conducive in reaching settlement.
The first stage is an introductory and description stage, whereby the mediator will introduce himself to the parties and explain his role as a mediator and go through the various stages of the process. Each party will then be given an opportunity to give their respective description of the dispute. The purposes of these statements are not to resolve the dispute at this stage but to afford the parties to frame their view of the dispute in their minds and to allow the mediator insight into the facts of the dispute.
The second stage allows for the mediator to have separate side caucuses with each party. The mediator is on a fact finding mission whereby he will ask open ended questions to gather as much information as possible. During this stage the mediator will encourage parties to identify and understand their emotions stemming from the dispute. The contents of these discussions will remain confidential; excepting when the party gives the mediator express permission to convey certain information to the other party. When doing this, the mediator will convey the information in a constructive and neutral manner, thereby preventing the same message being shared in a manner that could entice further disputes.
The third stage would involve the mediator identifying common goals between the parties and explore means and avenues of settlement. With the assistance of the parties, the mediator will prioritise all issues.
At the fourth stage the mediator will enter into a bargaining and negotiation stage. Generally the mediator will continue to meet the parties on their own during this stage. The purpose of this stage is to brainstorm hypothetical settlements, do reality testing with the parties, explore creative avenues of settlement, suggest certain options of settlement and allow the parties to modify it to their acceptance. This also allows the parties the freedom to explore settlement without being restricted to remedies prescribed by a court or tribunal.
The final stage is reaching and signing an agreement. The parties or their legal representatives will draft the agreement themselves.
The Advantages of Mediation over Litigation
Arguably, in today’s economic climate the two biggest advantages of mediation take the form cost and time factors. Mediation is cost effective in that parties are not subjected to the phenomenally high legal costs associated by either defending or perusing a legal dispute through our courts or tribunals. Parties are also not subjected to cost orders whereby they would have to pay for their legal costs and the legal costs incurred by the other party. From a time point of view, the mediation can be scheduled for a time determine by the parties themselves. Thus the parties will not be subjected to court backlogs, postponements and adjournments etc, which is associated with further cost implications.
The process brings finality to a dispute. Once settlement is reached the dispute ends. A dispute adjudicated at our courts or tribunals are subject to been taken on review or on appeal to higher courts.
Mediation allows for the parties to take ownership of the settlement. It is the parties themselves who construct and determine the settlement. In a court or tribunal it is a third party who will decide the outcome, based on law. The outcomes in these forums are very restrictive as they are prescribed by law. Given its flexibility, mediation allows for a win/win solution whereby both parties leave feeling that they have constructively concluded the dispute.
Unlike the litigious route, mediation provides a platform from which parties’ needs, interests and emotions can be addressed. In turn this would prevent a potential outcome, handed down by our courts, which is not in the best interest of either party.
Mediation allows for future relationship between the parties. Be it in an employment dispute, neighbours enticed in a dispute, a family dispute such as divorce or huge cooperates who have done business over the years. Mediation will facilitate a settlement but also assist in restoring a good relationship between the parties, should they see the need to. An adversarial approach adopted in trials often leave the parties feeling hostile towards each other, thus compounding the possibility of future problems and disputes, in cases where parties want to or have to continue their relationship.
Confidentiality is a key feature to mediation. Thus any agreement reached between parties remains confidential, unlike a court where a matter is for public record.
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