Commercial Mediation
Mediation is a voluntary, structured process in which a neutral third party (the mediator) helps the disputing parties reach a mutually acceptable settlement. It is an alternative to court proceedings and arbitration, suitable for a wide range of commercial disputes.
We represent clients in mediation proceedings and, where appropriate, act as mediators in commercial disputes between businesses.
When is mediation the right choice?
Mediation is particularly effective when:
- The parties wish to preserve or continue their business relationship
- Speed matters: mediation typically resolves in weeks rather than the years that court proceedings can take
- Confidentiality is important: mediation proceedings and settlement terms are not public
- The parties want to control the outcome rather than leave it to a judge
- The costs of litigation are disproportionate to the value of the dispute
Types of commercial disputes suitable for mediation
- Disputes arising from commercial contracts (supply, distribution, services, construction)
- Shareholder and partner disputes
- Debt recovery and payment disputes
- Disputes over intellectual property or know-how
- Employment disputes between businesses and their management
- Real estate and lease disputes
- Disputes arising from M&A transactions (representations and warranties, earn-outs)
Court-referred and out-of-court mediation
Mediation can be initiated in two ways:
- Out-of-court mediation: the parties agree to mediate before or instead of going to court. This can be based on a mediation clause in the contract or an ad hoc agreement after the dispute arises. We help draft mediation agreements and represent clients throughout the process.
- Court-referred mediation: the court can refer the parties to mediation at any stage of the proceedings. If the mediation results in a settlement, the court approves it, and it has the same legal effect as a court judgment.
Key advantages of mediation
- Speed: a mediation settlement can be reached in days or weeks
- Cost: significantly lower than court litigation or arbitration
- Confidentiality: proceedings are private; statements made during mediation cannot be used in court
- Enforceability: a court-approved settlement agreement has the force of an enforceable court judgment
- Party autonomy: the parties shape the solution themselves, rather than having one imposed by a court
- Relationship preservation: the collaborative process helps maintain business relationships that litigation would damage or destroy
Under Polish law, a settlement reached in mediation and approved by a court (zatwierdzenie ugody przez sąd) constitutes an enforceable title (with an enforcement clause), meaning it can be enforced in the same way as a court judgment.
Our approach
We prepare clients thoroughly before the first mediation session: analysing the legal position, identifying interests and priorities, and developing a negotiation strategy. During mediation, we represent the client's interests while keeping the focus on reaching a workable settlement. After the session, we draft or review the settlement agreement and handle any court approval proceedings.
If you are facing a commercial dispute, contact us. We will assess whether mediation is the right path and guide you through the process.