Mediation in Business – a valuable tool to save money!

Traders Den

by Thandi Makasi, SchoemanLaw Inc

Business disputes within the commercial sector are not an uncommon occurrence. As such, the process of litigation is often a very time consuming and expensive manner in which a dispute can be settled. This article will explore the benefits of mediation and how it can be used as an alternative to litigation as a dispute resolution mechanism.

Litigation v Mediation

Litigation refers to the legal process one follows to institute action against another party. This process means that the disputing parties will present their cases to a presiding officer in court, who will determine the outcomes of the matter. Even though the consequences of the litigation process legal create legal certainty, the process can often be very expensive and time-consuming, the results of which may cause tension between the parties and create an irretrievable breakdown in the relationship.

Mediation is an alternative dispute resolution, which serves the same purpose as litigation. During the mediation process, the disputing parties appoint an unbiased mediator who will facilitate meaningful discussions between the parties. The aims of the mediation are for the disputing parties to reach a mutual consensus on how the matter will be solved without going to court. The mediation process is initiated by the disputing parties, by enforcing their contractual obligations but in some circumstances, a court will make the suggestion.[1] During proceedings, each party will be given the opportunity to express their issues, and with the assistance of the Mediator, a mutually beneficial resolution should be reached.

Benefits Of Mediation

The litigious process is often very lengthy and expensive. In certain instances mediation allows opposing parties to reach a mutual and amicable agreement without having to spend large sums of money on legal costs. However, it must be noted that private mediations do not always provide for a reduction in costs. Be that as it may, mediation may offer a less complicated and often quicker resolution to disputes than litigation. Mediation also allows parties to preserve their relationships, which might not have been the case in the litigious process due to its adversarial nature.


Business relationships are prone to disputes. Hence, it is vital for a business to establish efficient ways to resolve these matters. Mediation serves as the perfect alternative to what could be a tedious litigious battle.

Contact for your legal needs!

Traders Den TD logo

Traders Den offers online trade promotion of your African business goods and services by means of blogs, video, podcasts and frequently asked questions.

Join the TD blog community and contribute your industry knowledge on Traders Den.

Attract new customers, clients and business associates from having your business blogs promoted on Traders Den.

Receive 1 FREE blog.

Contribute an educational business blog article, video, podcast or answer a few of your industries frequently asked questions.

We promote business blog content from business people in their fields of trade across Africa – the self employed professional – the start up company – the small to medium sized business owner – the already-successful company – the trader of goods, services, macro economics and financial instruments based on the African continent.

To have your FREE blog article, video link, podcast or industry FAQ published, simply send an email to Ryan at and once we have reviewed and approved your content, we will then proceed to create and promote your 1 FREE blog.