Contract Law - Agreement (contract) appointing a mediator

What this page is about: An Agreement appointing a mediator.

'Mediation' is a method of resolving disputes between parties.  Here are the clauses you must consider before drafting an agreement for the appointment of a Mediator to resolve disputes arising out of a contract which has been entered into between two parties. View a sample agreement appointing a mediator - find a mediator in the UK (London).

The role of the Mediator isn't that of a judge or arbitrator.  The Mediator doesn't impose a decision on the parties but he/she acts as a go-between, as a facilitator, to help them try to reach agreement in relation to the dispute. 

The agreement will be short and reasonably straightforward.

INTRODUCTION

The introduction must set out what dispute has arised between the parties, and the circumstances of the dispute.  The contract is identified by the date and description of the subject matter.

APPOINTMENT OF MEDIATOR

A clause is inserted to confirm the Mediator's appointment and may refer to the Appendix which will give the date and brief details of the contract and the names of the parties.  If agreed, this Appendix could also be used to give brief details of the disputes which are to be mediated.

PROCEDURE FOR MEDIATION

Although procedures vary from case to case, it's common for each party to be required to submit a short summary of the issues in dispute to the Mediator and to the other party, and such a clause can be inserted to this effect.  Sometimes the length of the submission is restricted - e.g. not more than 10 pages of A4 text. 

The date and location of the mediation should also be fixed in this section.

MEDIATOR'S FEES

Since mediation is a consensual process between the parties to the dispute, it's usual for each party to be responsible for half of the Mediator's fees.  You may wish to include a clause to the effect that, if one party doesn't pay, the Mediator is entitled to look to the other party for payment and it would then be up to the party making the double payment to recover 50% from the defaulter.   Daily rather than hourly rates are sensible for fees when the mediation is in process - not least because this is likely to give the parties better value for money, especially if the mediation takes a long time to settle.

CONFIDENTIALITY

It is an important element of mediation that strict confidentiality should be maintained by the parties, and this should be covered by the contract.

IMMUNITY OF MEDIATOR

Since the Mediator is brought in to assist the parties but isn't usually involved in any other way with either of the parties or the contract from which the dispute arises, it's appropriate that Mediator should be protected from any prospective liability.  Mediation is a private process and is usually conducted on a "without prejudice" basis - i.e. things which are said in the mediation and documents which are produced solely for the Mediation can't be used in any subsequent legal proceedings unless the parties agree otherwise.  Indeed, additional wording to refer to the "without prejudice" nature of the proceedings could be added in the mediation agreement if required.

If you are a business, there's no substitute for professional advice. Review a selection of recommended solutions from Google below.

include($_SERVER['DOCUMENT_ROOT'].'/ads.php');