31 Jan 31.01.2018 The Future of Mediation
31.01.2018 The Future of Mediation
Mediation as a less expensive and more effective method of dispute resolution
Businesses primarily use mediation as a cost-cutting device. Numerous multinational companies have adopted ADR clauses and several US entities have signed the Conflict Prevention Resolution (CDR), recognising mediation as “a less expensive, more effective method of resolution than the traditional lawsuit”. Mediators from the countries where mediation is more developed emphasise its capability to solve commercial disputes just as effectively as arbitration and litigation. One of the leading mediators in the UK claimed that “mediation has established its credibility among all top law firms in the UK and the trend is now toward more internationalism”.
Mediation in the UK
England is far ahead of some other parts of Europe in commercial mediation and it is home to many leading mediators. Considering the fact that substantial proportion of global business is conducted in English, commercial entities are likely to choose an English-speaking jurisdiction to mediate their disputes. Centre for Effective Dispute Resolution (CEDR) declared in 2016 that 10,000 commercial mediations had been performed in England and Wales in the previous 12 months, which is 5% more than in the previous year. Only 14% of EU countries have over 10,000 mediations per year and 46% have fewer than 500.
The development and future of mitigation
Australia is the country in which mediation has flourished, as one respondent said “there continues to be more mediators than mediations”. The Australian Centre for International Commercial Arbitration (ACICA), providing advice to firms on which mediation clauses to insert into their contracts, and the Australian government had a large part to play in making mediation accepted here.
The annual Global Pound Conference’s (GPC) Singapore Report, which brought together statistical data and the results of a survey, showed that lawyers who instructed mediators and facilitative role governments can play are considered to be the best ways of promoting mediation. The International Mediation Institute and CEDR have worldwide networks that aim to improve the transparency and efficacy of mediation around the world. CEDR has worked to promote ADR in over 50 jurisdictions. In the UK, national groups such as Independent Mediators and In Place of Strife have provided a network for mediators to further their good work and to pool their expertise.
This shows that mediation is now truly global. There is a strong global network of mediators around the world that is dedicated to increasing the presence of mediation and improving understanding of the practice. With the companies recognising that the use of mediation is not confined to small-time disputes and clients wanting to avoid paying large sums during litigation the future of mediation looks bright.