Mediation: the Future for resolving Property Disputes

December 16, 2013

I have been involved in resolving property dispute, either acting for one of the parties, or as the dispute resolver for many years. I have observed that in a high proportion of cases, one party caves in and agrees a settlement with the other party, not on the basis of the strength of their case, but because of fear of the costs and time delays of traditional litigation, and the risks of losing if things don’t work out on the court day. Mediation takes away many of these fears and risks. The benefits are :

Control. The parties keep control of their dispute and no one imposes a settlement on them. It is their decision to settle, and they decide at what level.

Creative. They can create an imaginative solution to the dispute, for example, I agree to settle this dilapidation claim at £100,000 in return for a new lease without rent review for 15 years. A judge cannot make such a decision.

Cost. A low fixed cost solution. A one day mediation frequently costs between £1,000 and £1,500, and about 85% of cases result in a settlement.

Relationships. Mediation is ideal for property cases where the parties have to continue to deal with each other, either as neighbours or as landlord and tenant. Neither party has “lost” in a mediation, and so there is no loss of face, and normal relations can resume shortly after.

Speed. A mediation can be organised in a matter of days, rather than litigation lasting months.

The stick. Courts can increasingly impose cost sanctions on a party who unreasonably refuses to mediate, even if that party eventually wins.

Choice. You have no choice over the judge you get, but you can choose a mediator who has experience in the area in question. That experience will give him an understanding of the issues in dispute enabliing him to focus the dispute on what is important to the parties and improve the chance of getting an agreement.

A skilled knowlegable mediator makes a huge difference to the likely outcome to a dispute. If you have a dispute that might be suitable for mediation, contact me Dominic Stanger FRICS for a no obligation initial discussion. [email protected] .