{"id":228469,"date":"2025-01-16T17:30:55","date_gmt":"2025-01-16T04:30:55","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=228469"},"modified":"2025-01-16T17:32:12","modified_gmt":"2025-01-16T04:32:12","slug":"pros-and-cons-of-mediation","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/disputes-and-litigation\/pros-and-cons-of-mediation\/","title":{"rendered":"Pros and Cons of Mediation"},"content":{"rendered":"\n

Mediation is becoming an increasingly popular method for resolving disputes outside of court<\/a>. Suppose you and your business are considering whether to engage in mediation but are unsure what it involves. In that case, this article will help set out the pros and cons of mediation. It will also explain what mediation is, how it works, and explore its key advantages and disadvantages. By the end, you will better understand what mediation involves and whether it suits you and your situation.\u00a0\u00a0<\/p>\n\n\n\n

What is Mediation?<\/h2>\n\n\n\n

Before we discuss the advantages and disadvantages, let us clarify mediation. Mediation is a process in which an independent third party, called a mediator, helps you and your opposing party find a mutually acceptable solution. The mediator does not make decisions for you. Their role is to facilitate communication and help you reach an agreement.<\/p>\n\n\n\n

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Depending on the complexity of the dispute, mediations typically last half or a full day. If you reach an agreement at the end of mediation, you will then draft and sign a settlement agreement containing your agreed terms.<\/p>\n<\/div>\n\n\n\n

Mediation is often the first step in alternative dispute resolution<\/a> before heading to court. While mediation is voluntary, courts often place weight on parties’ attempts to mediate before initiating proceedings. In an employment context, this is especially true, as the Employment Relations Authority often redirects you back to mediation should you file in the Authority without attempting it first.<\/p>\n\n\n\n

Given mediation’s importance in resolving disputes, you should understand the advantages and shortcomings of what it can do to help you in your dispute. <\/p>\n\n\n\n

The Pros of Mediation<\/h2>\n\n\n\n

1. Enforceability <\/h3>\n\n\n\n

If your mediation is successful, you will enter into a binding settlement agreement. As the agreement is binding, you will have the ability to enforce the agreement in law should the opposing party breach it. <\/p>\n\n\n\n

2. Time Efficient & Cost Effective  <\/h3>\n\n\n\n

As outlined above, you often conduct mediation over a single day, meaning you may have a resolution by the end of it. This means you can resolve your dispute and move on with your life much more quickly.<\/p>\n\n\n\n

Mediation is also more cost-effective than arbitration and litigation. The costs behind mediation typically include paying for your lawyer\u2019s fees and appointing the mediator<\/a>. In some instances, if you agree to it, you may also pay the opposing party’s legal fees.<\/p>\n\n\n\n

3. Control<\/h3>\n\n\n\n

In mediation, you maintain control and flexibility over the final decision, unlike in arbitration and litigation, where someone else makes the decision for you. A key purpose of mediation is for you and your opposing party to work together to find a mutually agreeable solution. The mediator will help guide you through this process and attempt to smooth out any bumps in the road.<\/p>\n\n\n\n

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How you reach a mutual agreement is up to you. Mediation welcomes creative solutions that are not necessarily applicable by law. For example, a court might only be able to award monetary damages, but in mediation, you could agree to a solution that involves an apology, a change in behaviour, or some other non-monetary resolution.<\/p>\n<\/div>\n\n\n\n

4. Neutral Perspective <\/h3>\n\n\n\n

A mediator\u2019s primary role of facilitating discussion and forming a neutral perspective is advantageous as it promotes fairness and encourages open communication. The neutral standpoint can de-escalate confrontation and enable a more collaborative discussion.<\/p>\n\n\n\n

5. Preserving Relationships<\/h3>\n\n\n\n

As mediation focuses on finding mutually acceptable solutions, it can aid in preserving your relationship with the opposing party.  This may be especially important in business disputes where you may need to continue interacting with the other party.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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