What is Mediation?
Mediation is considered as another form of Alternative Dispute Resolution (ADR) outside the court process and having one goal in mind- A fair resolution of issues at hand.
Mediation is an informal and private dispute resolution process in which a third party, the Mediator, assists the parties to reach a voluntary, negotiated settlement agreement. Mediation differs from other forms of dispute resolution in view of the voluntary participation of the parties and the mediator having no decision-making authority. The decision-making power rests on the parties.
Mediation is a free, voluntary and confidential dispute resolution process offering an alternative possibility for resolving disputes. Both parties get the opportunity to discuss the issues raised in the dispute, outside the ambit of a formal hearing environment. The parties have a guided forum within which they seek to understand each other’s concerns and explore creative options for settlement beyond the formal remedies that can be sought through litigation.
The role of the mediator is to assist in identifying areas of agreement that can be ultimately incorporated into a final resolution of the dispute. The Mediator’s function is to also seek to overcome bottlenecks and gear the parties towards an amicable settlement.
In commercial disputes, the common causes of bottlenecks are lack of trust in the integrity of the other party or a genuine good faith difference of opinion on the facts underlying the dispute or on the probable outcome of the case, should it be resolved through litigation. In such cases, the Mediator acts as a bridge between the parties offering a channel for communication by filtering out the emotional elements and gearing the parties to focus on the real objectives. The Mediator’s role will be to encourage the parties to reach an agreement themselves instead of having it imposed upon them.