Mediation is an increasingly popular method of dispute resolution in New Zealand. The use of a mediator and incorporation of a mediation clause in commercial contracts is generally preferable to litigation, which is more time-consuming and costly, and does not always yield the best or desired outcomes for either party.
There is no legislation or mandatory procedure governing commercial mediation. Rather, the parties will agree on the specific procedure they intend to follow at the outset, so any matters of disagreement or contention can be quickly addressed and have minimal impact on the parties’ obligations and benefits. Depending on the organisation you choose to oversee your mediation procedure, the Arbitrators and Mediators Institute of New Zealand AMINZ, the Resolution Institute, or another professional body, will have different protocols in place to guide the mediation. The protocols can ensure that settlement discussions are grounded in reality, help ensure informed decision-making and dictate the legal enforceability of mediation discussions.
The formulaic nature of mediation ensures that discussions have structure while being adaptable to the needs of different parties and types of disputes; thereby balancing flexibility with the promotion of confidence in the process.
Mediation is initiated upon contact between the mediator and contractual parties. The parties will discuss preparation and clarify their expectations, following which, the
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