Mediation is a voluntary dispute resolution method in which one or more impartial third parties, i.e., mediators, help the parties themselves to find and negotiate a solution that is satisfactory to them.
The parties are at the center of the process and have a decisive influence on both content and process, which is why this method allows for a broader perspective on the parties’ conflict.
The aim is not, as in a lawsuit before the ordinary courts, to reach the legally correct result, but to get the parties themselves to find and negotiate a satisfactory solution.
Mediation can be initiated for virtually any type of disagreement, as long as it concerns matters that the parties themselves can dispose of. The process is best suited for disputes where the parties can still communicate, as this is precisely the foundation of mediation.
Mediation is a quick and simple process. The mediation itself is often completed in 1-2 days, which is why it is also less costly compared to, for example, arbitration.
The Process of Mediation
Mediation is initiated by the parties appointing an impartial mediator.
It is up to the parties to decide where mediation should take place, including whether it should take place at a special organization that offers mediation and whether a geographical location should also be agreed in advance.
During the meeting, both parties present their views and opinions on the case, and in this way, with the expert guidance of the mediator, the parties can reach a solution that results in a settlement.
The parties may agree that their settlement agreement shall be entered in the court record as a court settlement, cf. section 270 of the Administration of Justice Act. In this way, it is ensured that the agreement can be enforced in the enforcement court if there is a monetary claim.
The purpose is also for the parties to gain insight into each other’s views and thus an understanding of the conflict that has arisen. Mediation is therefore a good starting point for two businesses who still want a good collaboration in the future.
Since mediation is unregulated, the process is based on what the parties have agreed in advance or along the way. It is therefore a good idea in business collaborations to introduce a mediation clause in connection with any contract, as this way you can get ahead of the dispute.
Contact a specialist
Do you need advice, guidance or help to implement mediation in e.g. your cooperation agreements? Or if you have other commercial legal issues, you are more than welcome to contact us.
