Key Advantages of Mediation

Because mediation has proven highly successful in the majority of cases, it's generally the external resolution process of choice.

ADVANTAGES:

• Provides opportunity for both sides to share their view.
• Lets both sides have a third-party perspective.
• Promotes discussion of creative solutions.
• Offers an opportunity for win/win solutions that are good both sides.
• You are in charge of the process and are the final decision maker.

MEDIATION:

Studies show that the average cost to the parties for a case to reach trial is $38,000 and the average award is $50,000. Therefore, organizations of all sizes are now including a mediation clause in their contracts. They recognize the process to be a cost effective, timely and efficient method of dispute resolution.
The strength of mediation is the ability to separate the people from the problem and to enable the parties to develop and assess options in order to reach a durable solution.

Mediation should be considered:

• When resources (time and money) are limited.
• When privacy and confidentiality are required.
• When a legal precedent is unnecessary.
• When maximum mutual benefit and better relationships are important.
• When creative options are possible.

Mediators are not problem solvers; they facilitate a voluntary process which enables others to solve their problems. A mediator does not pass judgment, assign blame or impose any penalty.

In mediation, the parties have the authority to settle the dispute and are empowered to reach a logical and reasonable solution.

Mediation Clauses

Dispute Resolution Clauses for Contracts and Agreements

NOTE : These clauses may not be appropriate in all situations; users are cautioned to seek professional advice when considering ADR clauses for contract application.

Mediation Clause:

'[Company] and [Customer] will attempt to settle any claim or controversy arising out of this agreement through consultation and negotiation in good faith and in a spirit of mutual co-operation. If those attempts fail, then the dispute will be mediated by a mutually acceptable mediator to be chosen by [Company] and the [Customer].'

Use of the Courts to prevent injury (optional):

'Nothing in this section will prevent either of us from resorting to judicial proceedings if interim relief from a court is necessary to prevent serious and irreparable injury to one party or to other'

Mediation/Arbitration Clause: (Recommended by the ADR Institute of Ontario Inc.):
'In the event that a dispute occurs that cannot be resolved by negotiation between the parties, the parties agree to use the services of a mediator(s) to attempt to resolve their differences and failing agreement on the procedures to be followed, it shall be conducted in accordance with the "rules of Procedure for the Conduct of Mediation" of the ADR Institute of Ontario.
In the event that the mediation does not result in a settlement of the dispute, any unresolved issues may be taken to any other appropriate dispute resolution process agreed to by the parties including arbitration or an appropriate court process. Should arbitration be chosen, it will be conducted in accordance with the "Rules of Procedures for the conduct of Arbitration" of the ADR Institute of Ontario pursuant to the Arbitrations Act, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.'