Mediation is fast, cost-effective, and confidential. It allows parties to agree on flexible solutions that courts can't impose and helps preserve business relationships.
In this video, Sarah explains how mediation works, why preparation is key, and how forensic accountants can add value by assessing quantum, preparing high-level loss models, and supporting negotiations. Our team can assist both before and during mediation, helping you identify key drivers of loss and negotiate effectively.
Changes made to the Civil Procedure Rules in England and Wales from 1 October 2024 mean that judges are now required to actively assess whether to order or encourage parties to engage in mediation or another form of alternative dispute resolution.
It is in the best interests of parties in dispute to attempt to settle through mediation as the process is much cheaper and quicker than going to court. The process is confidential, and the parties have the ability to agree on flexible and creative solutions that a court could not impose. The mediation process is also less stressful than going to litigation or arbitration and may help to better preserve the working relationship between the parties.
Mediation is about finding a mutually acceptable solution, not winning. The parties should approach mediation with a collaborative mindset, not a combative one.
The process can be frustrated if one side has no intention of settling or if one side only has the authority to settle up to a certain amount. However even if settlement is not reached, mediation is a helpful opportunity to learn information from the other side, share information on a without prejudice basis and see how far they may be willing to move away from their pleaded case.
It is important to prepare thoroughly for the mediation meeting, and forensic accountants can help with that preparation with regards to quantum.
We can work with you to consider the quantum impact of the issue or issues in dispute. Preparing a high-level model to calculate the loss will enable the key drivers of loss to be identified, as well as the significance of each of these drivers. Tactics will come into play when offers are being exchanged and awareness of the key drivers of loss will enable you to identify points that can be conceded with the minimum impact on loss and the key areas on which to negotiate with the opposing party.
We are always happy to attend the mediation meeting and to assist you on the day, considering points raised by the other side during the negotiations and assessing their impact. If the opposing party has also instructed forensic accountants, then a discussion between the accountants with the mediator will help to inform and may help to identify and narrow the issues in dispute.
In conclusion, if you are in the early stages of a dispute, we suggest considering whether the involvement of a forensic accountant would be beneficial and assist you in arriving at the best possible outcome in mediation.
For more insight and guidance, get in touch with Sarah May.
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Sarah May I am an associate director in our forensic and investigations service with a focus on commercial disputes and international arbitration in the financial services sector.View Profile