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Mediation: Alternative Dispute Resolution

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Mediation

Mediation is an ADR (alternative dispute resolution) technique. It is similar to but should be differentiated from arbitration. Mediation is generally used to avoid the strenuous and lengthy process of litigation. It’s majorly used when parties to an agreement are trying to preserve existing business or personal relationship.

Mediation is simply when a third party is invited to settle the dispute between two disputing parties. The third party is called a Mediator.
He asks them what happened, he suggests a way forward to them and they (disagreeing parties) decide which is okay for them. When they agree, the mediator will write their agreement which is now the decision and it is called Memorandum of Understanding (MoU).

Now in …show more content…

Anybody can serve as a mediator.
But it’s advisable to select someone knowledgeable in whatever field the agreement is based on. So lawyers, auditors, financiers and skilled professionals can serve as mediators. It’s only formal when it’s been stated in an agreement that parties would use mediation as a preferred choice for dispute.

Challenges to a layperson’s mediation
A Layperson's mediation is not enforceable. But mediation moderated by a registered or certified Mediator will be enforceable because he would prepare a MoU for them which will be enforceable.

Also, mediation is meant to be free of bias and sentiments. A mediator is supposed to listen to both sides and give a solution that will benefit both parties regardless of their personal views, opinions, and sentiments. A layperson may not subject to these rule and give advice based on their personal perspective.

Also, in some States, mediation done by a registered mediator can be enforced by the court while a layperson's mediation isn't recognized by the court. A layperson’s mediation has its own challenges, unlike Arbitration and Conciliation, which have a legal backing under the Arbitration and Conciliation …show more content…

However, it will be tenable and recognized by the court as evidence and will also succeed depending on the astuteness of the Mediator.

Benefits of Mediation
• It's a mechanism of alternative dispute resolution
• It is quicker and saves time
• It saves cost as opposed to litigation (that is arguing in court)
• It enhances a lasting relationship (litigation often severe relationship's tie)
• It is also enforceable in court
• The parties have the opportunity to decide and agree what suits them
• It is confidential as opposed to a court which is a public

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