The question of cost is even more pronounced when the amount in dispute is relatively small; and for every million-dollar dispute there must be many, many more low value ones. Such low value disputes can easily go without remedy because the cost of obtaining the remedy is beyond the financial means of many parties or significantly outweighs any benefit to be gained. Mediation is able to provide an option which is proportionate in terms of cost and time to the value of the dispute to the parties. Of course, the converse may also be true if the parties are unable to reach a settlement and then need to proceed to another forum within which to determine the matter. In that case, the cost of the mediation will be added to the cost of the determinative process (whether it is arbitration or litigation) meaning the entire exercise may be more, rather than less, expensive. In any event, there is clearly significant benefit to be gained in giving parties the opportunity to resolve their disputes through mediation and in doing so, providing them with the chance to minimise the costs of the dispute resolution exercise. Even where settlement is not achieved, mediation can assist the parties prepare for formal determination of the dispute by defining and narrowing the issues, establishing and understanding the strengths and weaknesses of a case, and identifying what further evidence is required. Look out for Part Six of this series which will draw the various strands considered together with some concluding thoughts.
End Notes 1 Collected Works of Abraham Lincoln Volume 2 “Fragment: Notes for a Law Lecture” (1 July 1850) . 2 Lord Woolf “Mediation: The Way Forward” (presented at Singapore Mediation Lecture, 10 October 2013). 3 At 7-8. 4 S I Strong “Realizing Rationality: An Empirical Assessment of International Commercial Mediation” (2016) 73 Wash & Lee L Rev 1973, at 1983. 5 Ibid 6 Ibid, at 2068. 7 Maryam Salehijam “The Enforceability of Alternative Dispute Resolution Agreements: An Analysis of Selected European Union Member States (2018) 21 Int’l Trade & Bus L Rev 277 at 278. 8 S I Strong “Clash of Cultures: Epistemic Communities, Negotiation Theory, and International Lawmaking (2016) 50 Akron L Rev 495 at 529.
About the author Catherine Green Catherine graduated with a BA and LLB from the University of Auckland in 2005. She also holds a Graduate Diploma of Business Studies (dispute resolution), a Postgraduate Diploma of Business Administration (dispute resolution), and is an Associate of the Arbitrators' and Mediators' Institute of New Zealand.
Catherine has her own private practice as an arbitrator, adjudicator, and mediator taking appointments with respect to both commercial and construction disputes. She is also the Executive Director of the New Zealand International Arbitration Centre (NZIAC) as well as its related domestic registry services which cover a full spectrum of commercial, building and construction, and family and relationship disputes.