Civil Engineering Reference
In-Depth Information
Case study
A serial user insurance company appointed the same mediator on
five alleged fraud cases over a period of two months. Although
some members of the claimant insurer's team changed, the decision-
maker and lawyer were common to all cases. By the fourth case the
mediator knew them well but unfortunately he was seen by the
defendant to appear more relaxed and friendly with the claimant
party and this was (wrongly) interpreted as being partial. Although
they had been aware before the mediation of the mediator having
several cases with the claimant (and this might have caused them
to be extra sensitive in the matter), the perception of the mediator
appearing not to be even-handed became an issue. Appearance of
even-handedness on the part of the mediator is crucial. The media-
tion continued to a successful conclusion but it was a lesson for the
mediator not to allow familiarity to challenge the key requirements
of neutrality and impartiality.
Ironically in this same case the mediator had become familiar with
the claimant's negotiation strategy of playing 'hard ball' for most of
the mediation and then achieving a quite reasonable solution at the
end. It was very tempting to reassure a despondent party that all
would come right in the end, without undermining the claimant's
tactics. Familiarity is a problem best avoided.
4.4.4
Mediator fees
There are a variety of ways in which mediators charge for their services:
lump sum, all-in fee - this may vary according to the value of the
dispute and with the number of parties involved
day fee plus preparation at an hourly rate
hourly rate
My preference is the first because everyone knows the cost before the
mediation takes place but the challenge then is to contain the amount of
time spent on preparation. Most all-in fees will contain a set amount of
reading-in time (probably three to five hours) and, if the mediator is one
who needs to read every piece of paper provided, it can be a challenge
for the mediator to contain the preparation within the allotted hours. Of
course, if such a mediator is chosen on an hourly rate basis then time
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