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Mediation for Disputed Invoices

Going to court may not be the only option. Why not consider mediation?

At My Credit Controllers our goal is to get our clients invoices paid as quickly as possible while maintaining professional and respectful relations with all involved parties. If an invoice is in dispute, My Credit Controllers can help a client take court action to recover the money, but court can be time-consuming and costly for both sides, so we always will try for a negotiated settlement if this is possible.

Sometimes it's difficult for those closely involved in a dispute to compromise, and court action usually only serves to entrench positions and makes matter worse. In circumstances that in our experience lend themselves to it, we may recommend that you use an alternative dispute resolution technique such as mediation. This may be able to help break a deadlock and achieve an acceptable solution for all involved.

What is mediation?

Mediation is voluntary process where a neutral third party (the mediator) effectively referees discussion to help the parties find a solution which works for them both. An experienced mediator can help people adopt the right perspective and put an issue into the right context, and find solutions which are better than the alternatives otherwise available. A mediator helps to ensure equal treatment and avoid unfair pressure.

All of the civil court pre-action procedure protocols recommend parties consider alternative dispute resolution, including mediation, as a way of avoiding going to court, and if you propose mediation and the other side unreasonably refuses, the court can re-introduce the possibility later, and the earlier refusal may count against the other side.

How does mediation work?

Both sides have to agree to mediate and to appoint a particular mediator. They enter into an agreement with the mediator, who agrees to try to help them find a binding solution. The process is private and can take place where the parties choose. Any agreed outcome is recorded, becomes a binding contract, and can remain confidential if the parties wish it.

Is there a cost?

Yes, but it is usually much less that the cost and risk of using other processes (such as court, tribunal, arbitration, adjudication or lawyers) to resolve the issues. Both sides agree to share the costs before entering into the process. The costs involved will reflect the amount in dispute, any preparatory work required, the mediation time, and the venue and location.

Is the process successful?

Yes a very high percentage of issues that go to mediation result in an agreed outcome.

What are the advantages of mediation?

  • Agreed process that the parties control
  • Mediator choice
  • Arranged quickly
  • Location to suit parties and process
  • Private process
  • Neutral mediator helps balance parties
  • Can agree confidential outcome
  • Cost effective compared to alternatives