Mediation is the modern, practical, commercial way to resolve disputes. It is a voluntary and private dispute resolution process in which a neutral person, the mediator, helps the parties to reach their own negotiated settlement agreement. The mediator has no power to impose a settlement. The Mediator’s function is to overcome any impasse and encourage the parties to reach an amicable settlement.
Mediation has proven an outstandingly successful management tool for resolving difficult disputes. It is a mean by which the parties can re-learn the basis of communication with which they can then resolve future disputes.
Mediation (especially at an early point in a dispute) is a more cost effective way of resolving a dispute than going to court. It is also much quicker, freeing up the management time of those involved. A mediation can usually be arranged within two to four weeks whereas court proceedings can drag on for years. Most mediations settle on the day of the mediation. Those that do not, often settle within a couple of weeks.
The parties feel a greater sense of satisfaction at the end of the process as they retain a significant degree of control throughout and ultimately determine the outcome. Most mediations are more about negotiation and less about nuanced legal argument, meaning the parties remain in the driving seat. In court the procedure is determined by the judge and the rules of court.
Litigation offers a limited scope of legal remedies. The outcomes in mediation are much more diverse and creative; as they are ultimately decided by the parties. The outcome can be adapted to meet their commercial needs and end the dispute with a win/win settlement. The parties can agree terms of settlement that contain provisions that the courts have no power to order, such as a new working relationship or payment in instalments. The parties have an opportunity to explore flexible solutions in a way that a judge cannot. A judge has to determine the facts and apply the law to the facts in a very rigid way, which may suit neither side. Court proceedings will most of the time result in a winner and a loser - or sometimes two losers.
Unlike litigation, both the mediation process and any information disclosed remains confidential to the parties and is not shared with the Judge. A confidentiality clause can also be included in the settlement reached to avoid opening the floodgates to other similar claims. Confidentiality prevents adverse publicity and embarrassment which could damage a party’s reputation.
Parties usually select the mediator and can appoint a mediator from their industry, who need not be a lawyer. In the event that the parties have agreed to participate in mediation proceedings or when the contract between them contains a clause referring to MARC Mediation Rules, the MARC shall appoint a mediator, who shall be selected according to the nature of the dispute or, as the case may be, based on a suggestion from the parties. This can be particularly beneficial in complex technical and industry specific disputes or where the parties cannot come to terms with the appointment of the mediator.
Mediation is about compromise. This can enable commercial relationships to be maintained where they otherwise may have been damaged irreparably by aggressive and adversarial court proceedings.
When drafting a contract for example, parties can easily contact the Secretariat with a question about MARC mediation clauses. Secretariat staffs are reachable by email on secretariat@marc.mu or alternatively by phone on +230 2034830
During a Mediation, parties and Mediators are in close contact with the team of the Secretariat that has been assigned to manage their case.
Lockdown has seen the growth of virtual mediations embracing technology and being conducted successfully over video conferencing platforms. This makes mediation more convenient and reduces the cost of mediation as it avoids the need for participants to travel to an agreed venue.