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REAL ESTATE DISPUTE RESOLUTION

The Centre for Effective Dispute Resolution (CEDR) - an alternative to court proceedings in litigation

As lawyers, we are often obligated to advise our clients on alternative dispute resolution (ADR) as a means of resolving their cases without the need for court proceedings. Among the various ADR options available, mediation stands out as the one most often used.

One of the many respected organisations in the field of mediation is the Centre for Effective Dispute Resolution (CEDR). It is therefore worth noting the results of CEDR’s recent audit of mediation outcomes and areas for improvement. As part of this audit, CEDR considered the success rates of mediation, satisfaction levels of parties involved, the effectiveness of mediators and the speed and cost-effectiveness of the mediation process.

According to CEDR, cases it mediated have a high success rate. Over 85% of disputes resulted in a full or partial settlement. It says that this success rate is consistent with previous years.

There has also been an increased use of online mediation, which was accelerated during the pandemic. Virtual mediations are, clearly, particularly useful to allow participants from various locations to engage without costly travel or difficult logistics. According to CEDR, the added advantage is that online platforms have resulted in faster resolution times, with cases being concluded in days rather than weeks.

It is, perhaps, no surprise that CEDR also endorse the benefit to using a specialist mediator- reporting that the subject matter expertise of the mediator plays a crucial role in facilitating a smoother mediation. The audit’s findings suggest that mediators who are skilled in a particular field can better navigate the nuances of the case and better facilitate its success.

CEDR’s audit also reports that overall participant satisfaction remains high, with 92% of parties reporting that they were satisfied or very satisfied with the mediation process. That said, some raised issues with a general lack guidance to better prepare for the process, which can be daunting.

The audit revealed the growing role of mediation in sectors that have previously relied on litigation to resolve disputes, such as construction, real estate, and intellectual property. Many of these industries have been attracted by the significant cost savings and time efficiency mediation can offer.

From DMH Stallard’s perspective, mediation undoubtedly has an important role to play in the resolution of the disputes we deal with and can be a very effective (including cost effective) process to find an amicable solution to even the most complex of matters. The newer world of virtual mediations has certainly opened up this form of ADR to more, and mediating remotely is likely to become the default for many types of disputes. But there is room for improvement still in mediation platforms to ensure confidentiality, ease of communication, and document sharing.

As disputes seemingly become more complex, we agree that mediators with a deeper understanding of industry-specific issues- a growing number of niche specialists – could be a real advantage and a more attractive alternative to going to court.

If mediation does continue to show high success rates, we may see more courts referring cases to mediation before allowing them to proceed to litigation. Mediation is not going to replace trials altogether, but disputing parties could, and perhaps should, be required to give the alternative a go more often.

For more information, or if you are a property owner or developer and need further advice, please get in touch with one of our property dispute solicitors today.

About the authors


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Emily Wood

Partner

Expert in property contracts, rights to light, telecoms code issues, and business rates appeals for private and public sector clients.

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