West London Chambers of Commerce
Members Services

Mediation and Arbitration

West London Chambers can help companies with commercial disputes

West London Chambers can help companies with commercial disputes

In the world of commerce not every sale satisfies both parties. Mediation and Arbitration are two avenues to resolve disagreements before going to court. Although they have the same goal in mind which is a fair resolution of the dispute, there are significant differences, which both parties must understand before the process starts. In arbitration the arbitrator hears evidence and makes a decision binding on the parties. Arbitration is similar to the court process as parties provide testimony and give evidence as they would in a trial. However, it is usually less formal and not held in a court but in private. In mediation, the process is a negotiation with the assistance of a neutral third party, trying to broker a deal between the parties. In mediation there is no resolution unless all sides agree.
Download mediation guide (PDF)
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Process explorer

Compare each path, step by step

A facilitated negotiation. A neutral mediator helps both sides shape their own settlement — nothing is binding unless everyone agrees.

Role of the mediator

Step 01

Mediators do not issue orders, find fault, or make determinations. Instead they help parties to reach a settlement by assisting with communications, obtaining relevant information, and developing options.

Joint opening

Step 02

Although mediation procedures may vary, the parties usually all together first meet the mediator informally to explain their views of the dispute.

Private caucuses

Step 03

Usually, the mediator will then meet with each party separately and will not divulge the discussions to the other party unless authorised to do so. It is common for the mediator to go back and forth between the sides a number of times.

Settlement

Step 04

The main focus remains on the parties as they work towards a mutually beneficial solution. Many disputes are successfully resolved and often the parties will then enter into a written settlement agreement.

Why it works

Step 05

Many people report a higher degree of satisfaction with mediation than with arbitration or other court processes because they can control the settlement, be part of the resolution and save the costs of litigation.

Non-binding unless agreedVoluntary settlementParties stay in control
At-a-glance

Mediation vs Arbitration

Outcome
Mediation
Settlement only if all sides agree
Arbitration
Binding award
Decision maker
Mediation
Neutral third party (facilitator)
Arbitration
Arbitrator (judge, lawyer or professional)
Formality
Mediation
Informal negotiation
Arbitration
Formal, similar to court
Setting
Mediation
Private
Arbitration
Private
Appeal
Mediation
N/A — parties control outcome
Arbitration
Generally cannot be changed in court
Enforceability
Mediation
Written settlement agreement
Arbitration
Enforceable in 142 countries
Why ADR

Three reasons to act early

It is important to actively consider a form of Alternative Dispute Resolution (ADR) as early in the dispute as you can. In fact, the court process requires some type of ADR to have been explored in any event.

Time

the time taken to come to a resolution through the court is time a business owner can ill afford – time is the most precious commodity.

Cost

the cost of litigating can spiral and can easily damage the business cash flow. Cash that can be better directed in growing the business.

Reputation

having a costly dispute played out in public can have a negative effect on all aspects of the business.

Talk to us

Talk to us about your dispute

Our team can guide you to the right route — mediation, arbitration, or a referral up the Chambers of Commerce network.

alanrides@westlondonchambers.org.uksallysmith@westlondonchambers.org.uk
Written with assistance from
West London Chambers directorsTaborns Legal BusinessMoore Barlow LLPNicholas Woolf & CoRadanks International Legal & Consultancy services