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Benefits of Using Mediation to Resolve Small Claims
But, according to work done by the Department for Constitutional Affairs, along with pilot schemes in Manchester, mediation has proved both popular and successful.
When the problem is small enough and the chances of settlement are high, there are many potential benefits to resolving disputes through mediation rather than dragging all parties through the small claims courts.
1) Faster resolution While it is not always a demonstrably faster way of getting the problem solved, it makes a lot of sense that if both parties can overcome their differences at the mediation stage, then the whole process is made quicker and easier for everyone.
2) The idea saves money If mediation helps reach a settlement without having to resort to moving it up to small claims court, then it is cheaper for all concerned.
3) All parties are more satisfied Let's face it, if your involved in a small dispute and there's a chance you and the other party can discuss a solution yourselves, you're bound to be happier with the result than if it were a ruling imposed on you by a third party.
If one party is told how to resolve the situation, they are likely to resent the decision and do everything they can to avoid compliance.
4) Parties are more likely to comply As briefly mentioned in the previous point, reaching a settlement that both parties have agreed two increases the chance of all parties complying.
If everyone does what they're supposed to do after the decisions have been reached, then the whole process becomes more reasonable and amicable.
What's more, compliance with the decision means it will stand the test of time, rather than being put through a "second-round" court battle.
5) Mediation is more versatile Mediation can deal with both legal and extralegal issues, including procedural and psychological issues that would not be decided by a legal body, thus saving on additional legal fees that could be incurred outside of court.
When you look at it closely, mediation might not be the best solution to every dispute, and it might not always bring about all the benefits listed above.
But in the majority of cases, it is certainly the most attractive idea for all those concerned, as it can save both time and money, and can create a more lasting and reasonable decision that everyone is happy with.