Commercial disputes are expensive, time consuming ad extremely damaging for businesses of all sizes. A recent report by the World Bank found that the average time i the UK that it takes for a dispute to run from issue of proceedings to enforcement of judgment is a staggering 437 days.
That’s an extremely long time for a business to pursue a dispute. You must also consider that this will also involve court fees and legal fees.
Mediation is a quick, confidential, and inexpensive alternative way of resolving commercial disputes. A commercial mediation takes just 1 day from beginning to end. It works because the companies involved reach agreement between themselves, with the help of an expert mediator. The terms of the agreement can be set out in a legally binding document.
This approach gives more certainty for a business, and also gives a greater chance of reaching an outcome which everybody can live with. Compare this with litigation where you fight fiercely for up to a year before you ultimately hope that everything goes to plan in court at trial.
Commercial mediation in the UK has an 86% success rate. Let us consider an example - in a commercial dispute valued at £200,000 the court fee just to issue court proceedings would be £10,000. For the same dispute, the mediation fee would be just £795 + VAT (and this is shared equally between the two companies).