Advantages & Disadvantages of Mediation and Conciliation

Question 1

Adv - Control of Parties

Answer 1

• Parties are in control and can withdraw from the process at any point - so is quite flexible.
• Also a compromise cannot be reached without the agreement of both parties.

Question 2

Adv - Decision

Answer 2

• The decision doesn’t have to strictly be a legal one - it is more likely to based on commercial common sense and compromise.

Question 3

Adv - Further Business

Answer 3

• Makes it easier for companies to continue to do business in the future, it may include agreements about the conduct of future business between parties.
• Something that can’t happen if the court gives a judgment, the court is only concerned with the present dispute.

Question 4

Adv - Adversarial Conflict

Answer 4

• Avoids this conflict of the court room and the winner/loser of court proceedings. In mediation, everyone wins.

Question 5

DisAdv - No Guarantee

Answer 5

• No guarantee the matter will be resolved, it will then be necessary to go to court after failed mediation.
• Results in additional cost and delay to the resolution.

Question 6

DisAdv - Skilled Mediator/Conciliator

Answer 6

• Successful proceedings requires a skilled professional - if these qualities aren’t present mediation can turn into a bullying exercise for the weaker party which then turns to a forced settlement.
• Even more likely to happen in conciliation as conciliator plays active role in suggesting settlements etc.

Question 7

DisAdv - Reward

Answer 7

• Amounts paid in mediated settlements often lower than amounts agreed in other settlements - a lot lower than in the courts.