Mediation Clauses in Contracts

This especially valuable where the contract envisages an on-going business relationship, particularly in the fields of construction, joint ventures, partnership, information technology, employment, franchises, shareholders agreements, directors service contracts, export/import agreements, landlord and tenant, distribution and agency.

Particularly where it requires the parties to consider mediation at the outset (a trigger) and requires that senior management be involved at an early stage in the dispute.

But beware of Mediation Clauses that can be used for time wasting or do not allow for injunctive or interim relief

The benefits of mediation for courts and litigants

• Resolves disputes
• Maintains business relationships
• Ensures confidentiality
• Reduces costs
• Allows you to control your case
• Provides a speedy resolution (back to top)

Specimen mediation clause

"In the event of any dispute arising between the parties in relation to this contract, which cannot be settled by negotiation, the parties in question will in good faith seek to resolve that dispute through mediation under the auspices of the ADR Group of Grove House Grove Road Redland Bristol BS6 6UL before resorting to expert determination by an expert appointed jointly by the parties or in default of agreement appointed by the President for the time being of the Law Society of England and Wales. The expert's decision shall be final and binding on the parties. The expert's fees shall be borne by such parties as the expert shall decide."

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