Civil Engineering Reference
In-Depth Information
main room. If the mediation is in a hotel there is usually a bar where
people can meet whilst the lawyers work. Most of my mediations end
this way - and it is another demonstration of the power of mediation.
Parties just would not have a drink together if they had slugged it out in
court or an arbitration hearing; usually they never want to meet again.
In mediation it is different, and fractured relationships can be restored.
Indeed new business is often discussed.
Case study
A factoring company was in dispute with an engineering company
who had, after a long association, changed factors and allegedly bro-
ken a contract. Much of the cause of the dispute was a breakdown
in communication between the two companies and ineffective del-
egation of responsibilities. The two principals, who had agreed the
original contract, no longer had direct contact - until they attended
the mediation. The dispute settled in mediation. Over a drink whilst
the lawyers were writing up the settlement agreement, the princi-
pals agreed a new factoring contract for a subsidiary of the engi-
neering company - and to meet regularly to avoid a repeat of the
dispute.
7.6
What can go wrong?
The mediator will be asking questions of the lawyers writing up the
settlement agreement. For example:
What has been learned from this that will help to avoid the same
situation arising in the future? If there is no continuing relationship
this may not be relevant to the agreement, but it will still be relevant
to the party.
Date for payment.
Default provisions; interest for late payment. Mediator to adjudicate
on any disagreement arising from the settlement. The mediator is the
custodian of the spirit of the deal.
Who pays legal costs? Usually any deal will include costs or be subject
to taxation. But assumptions may have been made and the settlement
agreement must be specific.
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