Firms prefer mediation option - survey

MEDIATION WOULD be the first port of call in dispute resolution for 170 legal, accounting and other professional firms, according to a survey carried out by the Irish Commercial Mediation Association (ICMA). The survey will be released at a conference organised by the association in Dublin today, which will be chaired by Mr Justice Peter Kelly of the Commercial Division of the High Court.

More than 3,500 managing partners were surveyed and 170 responded, according to Austin Kenny, spokesman for the association. The respondents said that the key advantage of commercial mediation was cost saving, stating that their clients could save up to 70 per cent compared with litigation.

Other key advantages cited were speed, control of the process and the preservation of business relationships.

The survey showed a growth in mediation activity of 48 per cent in 2007 and a further 33 per cent growth in 2008. One in three law firms and one in five accountancy firms now has an accredited mediator, he said. Mr Kenny said statistics from the Commercial Court indicated that almost 65 per cent of cases referred to mediation last year were successfully settled. The survey showed a higher success rate of approximately 70 per cent over the last three years.

In the US and Britain, where commercial mediation is more established, the volume of cases dealt with through mediation is much higher and the success rate is up to 85 per cent, he said.

Mediation has been found to be especially useful in solving disputes in family businesses, the construction industry, partnerships, property disputes, the termination of business relationships and employment, according to the survey.

“Cases are typically dealt with in a three to six-week period from commencing the process, which is significantly quicker then going to trial,” Mr Kenny said. “The parties, through their direct involvement in the process, can often end up with a more creative solution than litigation can provide.

“The process creates the opportunity for important relationships to be repaired which could otherwise be damaged by litigation. In some cases an apology and/or explanation, rather than money, is central to disputes being resolved.”

Speakers at the conference today will include: Turlough O’Donnell SC and a mediator; Brian Speers BL and a mediator from Northern Ireland; Martin Lang of the Construction Industry Federation; Terence O’Keeffe, an in-house counsel for the US government; John Madden, a mediator in Ireland and the US and Lawrence Kershen, QC and a mediator in the UK.

The conference will open with a talk on the mediation process. Later, Mr Justice Kelly will chair a panel discussion with the speakers.

The Law Reform Commission recently published a consultation paper on alternative dispute resolution, including mediation and conciliation, and is at present engaged in a consultation process prior to publishing its final report.

Its early recommendations included placing mediation on a statutory footing and regularising the accreditation and regulation of mediators.