Mediation is now a familiar part of the commercial dispute landscape. Courts encourage it, advisers routinely recommend it, and many businesses see it as a quicker, cheaper alternative to litigation. When it works, mediation can resolve disputes efficiently and preserve valuable commercial relationships.
However, mediation is not always effective. If used at the wrong time or without adequate preparation, it can waste time, increase costs, and entrench positions.
It is essential to understand when mediation is likely to succeed and when it may be counterproductive.
Neil Allsopp, Partner at Allsopp Campbell Rainey, explains: “Mediation is a powerful tool, but it isn’t a box-ticking exercise. The outcome depends far less on the process itself and far more on timing, leverage and preparation.”
Why Mediation Is Encouraged in Northern Ireland
In Northern Ireland, the courts expect parties to consider mediation and other forms of Alternative Dispute Resolution (ADR) where appropriate. An unreasonable refusal to engage can carry consequences later, even if a party ultimately succeeds in court.
This does not mean mediation should always be pursued, but it should be considered strategically rather than automatically.
When Mediation Works Well
Mediation is most effective when there is room for commercial pragmatism.
It often works well when:
• Both parties accept there is risk on each side
• The dispute is mainly about money, timing or performance
• The cost or distraction of litigation is a concern
• Speed and confidentiality matter
• The parties want control over the outcome.
In these situations, mediation can offer flexible solutions that courts cannot impose, such as staged payments, revised contracts, or future working arrangements.
The Importance of Timing
Timing is often the decisive factor in mediation outcomes. If attempted too early, parties may lack a clear understanding of their strengths and weaknesses.
Without this clarity, discussions may become speculative, unrealistic, or defensive, making compromise difficult.
Conversely, mediation attempted too late can lose effectiveness. Once significant costs are incurred or positions have hardened, parties may prefer to continue the dispute rather than resolve it.
Mediation is most effective when issues are clearly defined, key information has been exchanged, and both sides can realistically assess risk. At this stage, mediation becomes a focused negotiation rather than an exercise in persuasion.
As Carla Fraser, Partner at Allsopp Campbell Rainey, notes: “Mediation works best when parties are informed, realistic and ready. Pushing it too early – or too late – can undermine its value.”
When Mediation Can Backfire
Mediation is unlikely to succeed if one party lacks incentive to compromise.
Common warning signs include:
• A party using mediation purely to delay proceedings
• Entrenched positions with no room for movement
• A significant power imbalance
• Lack of authority at the mediation table
• Disputes requiring urgent court remedies.
In these cases, mediation may provide false reassurance, unnecessarily disclose strategy, or add costs before litigation resumes.
Preparation Makes the Difference
Successful mediation relies on preparation rather than optimism.
That means:
• Understanding your legal position and risk
• Having a clear commercial objective
• Knowing what you can and cannot concede
• Ensuring decision-makers attend with authority
• Treating mediation as part of a broader dispute strategy
When approached correctly, mediation can strengthen a party’s position, regardless of whether the dispute settles.
Mediation and Litigation Are Not Opposites
A common misconception is that choosing mediation means abandoning litigation. In practice, both processes often proceed in tandem. A well-timed mediation can narrow issues, clarify positions, and reduce costs, even if the dispute proceeds to court.
A Practical Takeaway
Mediation is most effective when used deliberately and at the appropriate stage. The main risk lies in using mediation without a clear strategy.
Early advice helps businesses determine whether mediation is likely to add value or if court proceedings are more appropriate.
How We Can Help
Allsopp Campbell Rainey advises businesses across Northern Ireland on commercial disputes at every stage, from early mediation strategy to litigation when required. Contact Neil Allsopp, Carla Fraser or the Allsopp Campbell Rainey team.