How To Resolve A Commercial Dispute - What Are The Options?

Resolving commercial disputes can sometimes be a challenge and a very stressful time. Alternative dispute resolution is a great way to resolve a commercial dispute, especially if litigation is not an option. The Civil Procedure Rules actually encourages the resolution of disputes to be done outside of court and only use litigation as a last resort. Judges will look at whether parties had considered alternative dispute resolution before litigation. Mediation is the most common form of alternative dispute resolution and probably the most effective, as mediations benefits are commonly known as being efficient and cost-effective.

Mediation is available to resolve all types of disputes and not just commercial disputes. A mediator has an aim to help parties reach a solution themselves without imposing a their solution. In commercial disputes, it is very common for the subject of the dispute to be lost during litigation and the ultimate goal of the parties may be confused and ignored. Mediation avoids this confusion from occurring, as it focuses completely on the dispute itself and then moves gradually through to the solution.

Other alternative dispute resolution options to litigation and mediation are becoming more and more popular in commercial dispute resolution. It is not only encouraged by the Civil Procedure Rules, but also the Ministry of Justice, governments and judiciaries internationally, as well as the European Commission. All of these promote mediation and alternative dispute resolution as a way to resolve any commercial dispute. In the past, courts have looked down on parties in dispute over damages, when mediation has not been considered and there was no reasonable reason for not considering it.

Mediation is suitable for getting to a solution for commercial disputes if it is either a large or small case. The success rate of mediation is extremely high and levels of satisfaction among parties range is quite elevated. Both parties must be happy to go into mediation, by looking at it as a way of providing a sustainable solution for both of them and making it much easier for both parties to continue working together in a good business relationship. Mediation completely focuses on obtaining mutual agreement between parties, which is crucial to the success of mediation.

The mediation process is completely confidential, which mean that if parties fail to reach an agreement and then move on to litigation as a last resort, the goings-on in the mediation between parties cannot be disclosed at mediation or used against either party as evidence in court.

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