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New mediation group offers costs savings
24 January 2010 By David Clerkin
Businesses could cut the costs of settling commercial disputes by more than 90 per cent if they opted for mediation before litigation, according to the founder of a new Cork-based commercial mediation group.
Bill Holohan, secretary of Commercial Mediators, said mediation would become an increasingly popular way to settle disputes as it offered a cheaper and faster alternative to using the courts. The new group, formed by 15 solicitors and four barristers, is based in Cork, but its members also have a presence in Dublin and Limerick. It hopes to establish a nationwide presence over time.
Commercial mediation involves both parties to a dispute agreeing to appoint an independent third party to try and resolve their differences.
Holohan said more than 80 per cent of cases referred to mediators were agreed within a day, while a further 5-10 per cent reached settlements in relatively short periods.
Agreements are binding on both sides, but if a mutually acceptable deal is not agreed, parties remain free to pursue litigation. ‘‘The advantage of mediation is you get a third party involved who is dispassionate and disinterested in the outcome, and who can perform a reality check," said Holohan.
‘‘The process is confidential – the mediator will pass information to the other side only if authorised to do so.
The mediator gets to see both sides and can see common ground between the parties."
He said businesses that pursued litigation through the High Court could run up bills of more than €50,000 even before the case was heard – or double this for more complex cases. Cases that could incur costs of €500,000 if pursued through the courts could be settled for as little as €25,000 through mediation, he said.
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