Voluntary mediation: Overview, definition, and example
What is voluntary mediation?
Voluntary mediation is a form of alternative dispute resolution (ADR) where the parties involved in a conflict choose to participate in the mediation process willingly, without being compelled by a court or other authority. In voluntary mediation, the parties agree to work with a neutral third-party mediator who facilitates communication between them, helping them reach a mutually acceptable resolution.
Unlike binding arbitration or litigation, the mediator does not have the authority to make a binding decision. Instead, the mediator's role is to guide the parties toward a resolution by assisting them in identifying issues, exploring possible solutions, and finding common ground. The process is voluntary in the sense that the parties can choose to stop or withdraw at any time if they do not feel it is productive.
Why is voluntary mediation important?
Voluntary mediation is important because it provides a less formal, more flexible, and cost-effective way of resolving disputes compared to litigation. It allows the parties involved to maintain control over the outcome, as the resolution is reached by mutual agreement rather than imposed by a court. This process can save time, reduce legal expenses, and preserve relationships by encouraging collaborative problem-solving.
For businesses or individuals, voluntary mediation is beneficial because it can be faster and less adversarial than going to court. It often leads to solutions that are more acceptable to all parties, as the mediation process allows for creative, customized resolutions. Additionally, voluntary mediation helps parties avoid the stress, uncertainty, and expense of a trial.
Understanding voluntary mediation through an example
Imagine two business partners, Sarah and John, who are in a disagreement over the distribution of profits in their joint venture. Instead of resorting to litigation, they decide to engage in voluntary mediation. Both parties agree to hire a mediator to help them work through their differences.
During the mediation sessions, the mediator helps Sarah and John communicate their concerns and perspectives, guiding them toward a mutually beneficial resolution. After several meetings, they agree on a new profit-sharing arrangement that both find fair and reasonable. Since both parties chose to participate voluntarily, they are more committed to the solution, and the process preserves their professional relationship.
In another example, a landlord and a tenant have a dispute regarding the terms of a lease agreement. The landlord and tenant voluntarily agree to enter mediation rather than going to court. With the help of the mediator, they come to an agreement on the terms of the lease renewal, avoiding the time and expense of litigation.
Example of voluntary mediation clause
Here’s an example of how a voluntary mediation clause might appear in a contract:
"In the event of any dispute arising under this Agreement, the Parties agree to first attempt to resolve the dispute through voluntary mediation. The Parties will mutually select a qualified mediator, and the mediation shall be conducted in good faith. Participation in the mediation process is voluntary, and either Party may choose to withdraw at any time. Any settlement reached through mediation shall be binding only if the Parties agree in writing."
Conclusion
Voluntary mediation offers an effective, collaborative approach to resolving disputes outside of the courtroom. It allows parties to maintain control over the resolution process, helping them to avoid the formalities and costs associated with litigation. By engaging in voluntary mediation, parties can often reach a more satisfactory, customized solution while preserving relationships and promoting constructive communication. Whether in business, personal, or legal matters, voluntary mediation provides a flexible and less adversarial alternative to conflict resolution.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.