Mediation is a voluntary and private dispute resolution procedure where a neutral person, the mediator, helps the parties to arrive at their own negotiated settlement agreement. The mediator cannot bind the parties to enter into any settlement. The work of the mediator is to overcome any impasse and advocates the parties to reach an agreeable settlement.
Generally in a commercial dispute a deadlock arises due to lack of trust in the integrity and morality of the contracting party or a genuine good faith difference of opinion on the facts essential to the dispute. The mediator may act as a diplomat and a means for communication by filtering out the emotional elements and allowing the parties to focus on the fundamental objectives.
The mediator encourages the parties to arrive at an agreement themselves as opposed to having it forced upon them. Under the BIArb Mediation Rules, dispute resolution is programmed to commence and conduct within a time frame. BIArb Mediation Rules and Code of Conduct of Mediators are based on the guidelines issued by the International Mediation Institute.