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MEDIATION:

Mediation is sometimes referred to as "assisted negotiation" which, in the business and commercial arenas, is probably the best description of a mediator's service. A mediator, unlike a judge or an arbitrator, does not impose any resolution or agreement on the parties to mediation. Rather, the mediator attempts to assist the parties in reaching mutual agreements that they can honor. The ultimate decision to agree or not agree, and the related consequences of the decision, always remain with the parties themselves.

The tools, strategies, and techniques used by the mediator to assist the parties depend upon the parties themselves, the issues to be resolved, the stage of disagreement or conflict, and the time the parties are willing to commit to reaching agreement.

The common techniques of commercial mediators include, among others, "evaluative mediation" (e.g., the mediator provides assessments, predictions, and proposals for agreement), "facilitative mediation" (e.g., the mediator assists the parties, without offering evaluations or proposals to the parties), and "caucus" and "shuttle" mediation (e.g., the mediator works with one party at a time, out of the presence of the other).

Regardless of the techniques used, the stage of disagreement, or the manner by which mediation is initiated (e.g., party or legal counsel proposal, court mandate, contractual requirement, etc.), mediation is a private and confidential proceeding. Unlike court proceedings, outside observers are not allowed. Disclosures by a party to the mediator are not revealed to the other party without the permission of the disclosing party. If agreement is not reached, the mediation discussions do not become public record. If agreement is reached, only the terms of the agreement may become public, and then only if the agreement is not voluntarily honored by the parties, but requires court enforcement of its terms.

Given the parties to mediation have, merely by attending a mediation session, committed to at least explore the possibility of non-court resolution of their disagreement, and given the opportunity to speak directly to the opposite party (rarely available in a courtroom setting), parties often reach an agreement to resolve all, or some, of their disagreements through mediation. Even when the parties do not initially reach agreement, they often find that the initial mediation sessions have "opened the door" to amicable resolution, and they walk through that door soon afterward, sometimes not only settling their immediate differences, but going on to renew their former business relationship.

Although mediation is not a perfect dispute resolution process, it is often a very successful one, and almost always worth consideration. Under the direction of Steven Charles Smith, Jur. Dr., FCIArb., a mediator skilled in both litigating and resolving business disputes, mediation has the prospect of leading to quick and mutually acceptable, party-determined agreement; perhaps even reconciliation of business relationships.