How does mediation work?

A mediator is some one who helps the parties reach a settlement. The mediator does not make any decision.

Mediation is a confidential process where the free exchange of information and the help and guidance of the mediator enables the parties to achieve a better understanding of their own case, the other party's case and the possible risks of litigation or other dispute resolution.

Any information exchanged in mediation must remain in confidence and cannot be used, save with consent of all parties, in any subsequent litigation. This often enables parties to exchange information, which is so often held back in the confrontational process of litigation. It also enables parties to express their emotions.

So often parties involved in litigation tell us "it is the principle",  "I can't let him/her get away with it".  Mediation lets such people truly have their say in an environment where little damage can be done but much can be achieved by making others fully aware of one party's feelings.

As such, the mediator must reach an early understanding with the parties and have their confidence.

The parties attending mediation may attend with legal or other advisors or on their own. They should be aware however that the mediator does not offer legal or accountancy advice and therefore the parties should ensure that they have taken, or have access to, such advice as they may require.

It is essential to the process that the person attending the mediation on behalf of both parties has the full authority to settle the claim and that the sanction of some third party, such as other directors, is not required.