Previously, the court was seen as the only way when parties couldn’t reach an agreement. Now, more and more often, mediation is chosen as an effective way to resolve disputes before the start of a judicial process.
The reason is not only the desire to save time, money, and nerves. Society is changing – people increasingly choose dialogue over conflict and seek common solutions. This applies to both personal and business situations and indicates a growing trust in negotiations and the development of legal culture.
There are several ways to resolve a dispute before going to court: through mediation, negotiations, a claims procedure, or arbitration.
Mediation and Pre-trial Dispute Resolution
Pre-trial dispute resolution gives parties a wider range of ways to settle the situation – both formalized (for example, a claims procedure in commercial disputes) and informal (negotiations, arbitration, or arbitration if provided for in the contract).
The main goal of these procedures is to avoid court, save time and resources, and find a solution in the shortest possible time.
How mediation works: two parties want to keep the confidentiality of the dispute’s circumstances and turn to a neutral third party – a mediator.
The main goal of the mediator is to find a mutually acceptable solution that takes into account the interests of both parties. Mediation allows parties to express themselves and be heard – this reduces tension and helps maintain working and partnership relationships.
What Makes Mediation Special?
Mediation significantly differs from other pre-trial procedures – in format and principles. Its main difference is the involvement of a neutral mediator who does not make decisions for the parties but helps them hear each other and find a compromise.
In negotiations or a claims procedure, such a figure is usually absent – parties engage in dialogue directly, and the process is often more formalized.
Other Differences of Mediation:
● Voluntariness – both parties can agree to resolve the dispute through mediation, while other mechanisms are mandatory according to the contract or law.
● Confidentiality – parties and the mediator sign a non-disclosure agreement regarding the dispute’s details, while court decisions publish almost all the circumstances considered in the process.
● Informality – parties independently or with the mediator determine the order of discussing issues, while in other pre-trial and judicial dispute resolution formats, there is a clear sequence of actions.
● Mediation Result – an agreement based on the parties’ real interests, while other tools may end with unilateral actions (e.g., a claim) or resorting to arbitration or a tribunal where the final decision is made by an arbitrator.
The key difference is that mediation is focused on dialogue and understanding, not just on the legal formalization of parties’ positions.
Which to Choose – Mediation or Other Alternative Dispute Resolution Methods?
We recommend combining tools that will help you resolve the dispute faster and achieve the desired result.
We highlight the main advantages of such a combination:
1. Comprehensive Approach to Dispute Resolution
Pre-trial resolution is not just a separate stage but also a basis for deeper negotiation formats. For example, during a claims procedure, parties can clearly outline positions, formulate demands, and gather evidence. This creates a foundation for mediation, where the focus shifts from legal wordings to parties’ real interests.
2. Time and Resource Savings
The court proceedings between entrepreneurs can last for months or even years. Instead, mediation and negotiations allow achieving results much faster. During this time, parties spend less money, can focus on running their businesses, and retain clients.
3. Relationship Preservation
If parties engage in a fierce confrontation and go to court, they no longer see a way to preserve relationships. Instead, mediation creates conditions for a healthy discussion of mutual claims. This way, after the process is over, you can continue cooperation, maintain reputation, and avoid public escalation of the conflict. Mediation helps not only resolve the dispute but also preserve personal and business relationships in business and partnership projects.
4. Flexibility of Tools
Alternative dispute resolution procedures allow adjusting the format to a specific situation: agreeing on conflict resolution stages, meeting places, the number of sessions, involving additional experts. Such flexibility is not available within the framework of a judicial process, which is strictly regulated by law. In modern practice, a hybrid model is increasingly used to resolve disputes between entrepreneurs: combining mediation with arbitration or tribunal review.
Conclusion
Mediation and pre-trial dispute resolution do not exclude each other; they can be effectively combined. This way, you can efficiently protect your personal rights and business interests.
A lawyer who offers effective conflict resolution methods before going to court demonstrates an understanding of the legal essence of the dispute and a high level of professional ethics and strategic thinking. This approach speaks of the ability to see the situation comprehensively – taking into account legal nuances, the client’s emotional state, reputation, and financial interests.