Disputes are part of life, and they can arise between families, individuals or business partners. Most disputes are caused by disagreements or disagreements, but sometimes they can be the result of human friction without a clear root cause. In this text, we look at what is meant by disputes, what they can lead to and how mediation or conciliation can provide an effective way of resolving disputes, before or during court proceedings.
Multiple disputes
Disputes can take many different forms. They can be personal, such as family disputes, disagreements over inheritance, or disputes between neighbours over the location of a hedge, for example. In business, disputes can relate to breach of contract, competition law or damages. The causes of disputes are manifold and difficult to list exhaustively. Sometimes the cause of a dispute may be straightforward, sometimes complex and multi-dimensional. The consequences of disputes can be serious, affecting the lives, livelihoods and peace of mind of the parties involved
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Why should you mediate or try to settle disputes?
Dispute mediation or settlement negotiations offer many advantages. Too often, disputes escalate into full-blown litigation before the parties have even fully negotiated an amicable solution. Although most disputes end in settlement, it is better to achieve it as early as possible
Mediation emphasises the participation and decision-making of the parties to the dispute. The parties influence the settlement, giving them greater control over the outcome. This can lead to long-lasting and satisfactory solutions when the parties feel that their interests and needs have been taken into account.
Mediation can be a very quick process. The court process and appeals take several years, while conciliation negotiations can produce results in a matter of days, weeks or months. Speed is often particularly important in business disputes, where quick decisions can be crucial and eliminate the need for court proceedings.
Mediation is often a cost-effective solution to resolve disputes. Court costs, attorneys' and paralegals' fees, possible expert testimony and other costs related to the dispute can be significant. Mediation costs are usually significantly lower, making it a financially attractive option. The earlier a settlement is reached, the lower the costs.
One of the key benefits of mediation is the human and business relationships that are preserved. A lawsuit can irreparably damage the relationship between the parties. A well-conducted mediation process can seek to build cooperation and understanding between the parties, which can help preserve relationships with the other party after the dispute is resolved.
Mediation also offers individual solutions. In court, decisions are based on the law, but mediation can be flexible to take into account the needs and circumstances of the parties. A settlement agreement can be a tailor-made solution that puts an end to the dispute once and for all.
Simplified steps in settlement negotiations
Preparation: The parties prepare the negotiations by gathering the necessary information and defining their objectives for the negotiations.
Negotiations: The parties and their assistants, as well as any external mediators (for example, a lawyer who has attended the Finnish Bar Association's mediation training), meet to discuss their differences in an open and purposeful manner. Negotiations are conducted in confidence and settlement offers made by the other party may not be invoked if the matter is later pursued as a dispute in court.
Drawing up a settlement agreement: If the negotiations lead to a solution, it is advisable to draw up a written agreement in which the agreement reached is recorded with its responsibilities and obligations. There is neither a need nor a point in a settlement agreement to take a position on who is the ”winner” or ”more right” of the parties to the dispute.”
The role of the court in promoting reconciliation
The full court process, including preparation, main hearings and possible appeals, is often long, expensive and emotionally draining. It also often takes time and resources that could have been used more efficiently in the past.
It should be stressed that the fact that a dispute has been brought before a court does not mean that an amicable solution is definitively ruled out. As part of the normal judicial process, the court must also seek to promoting reconciliation. This obligation comes directly to the courts from the law. More and more court cases that have already started end in a settlement rather than a judgment. Finland also has a law on mediation in court. If the parties to a case wish to refer a case that has been brought before the court as a civil dispute to court mediation, this is possible. If the conciliation procedure is unsuccessful and no settlement is reached, the case continues to be dealt with in the civil proceedings.
Finally
Disputes are often an inevitable part of life, but resolving them does not always require a legal battle. Mediation offers an effective and humane alternative that can save time, money and relationships. Even if the dispute has already gone to court, mediation is still an option and often a sensible solution. The old adage ”a lean settlement is better than a fat dispute” still holds true.
Article written by a lawyer Santeri Valkamo. You can always call him free of charge on 010 299 5090. You can check our price list Here.
Related articles:
Initiation & preparation of a dispute
Main hearing of the dispute
The course of the dispute process