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Between the statement of a positive outcome and the written agreement: a delicate phase of the mediation

In a mediation process once the parties have identified the main terms of a positive outcome, they might need a larger time to put together the detailed terms of an agreement.

In the time required to write the agreement, possible change of mind may happen, or the parties may get stuck on the details.

Stepping back from the positive result discussed or making a relaunch in the attempt of obtaining more are common attitudes that find their reasons in the personal need to keep in some way the relationship still open or the need to perceive a winning conclusion or, else, to accomplish unexpressed needs.

The relaunching is a quite common attitude of the parties. One of them may find strategically workable asking a little more in this phase, taking advantage of the other party’s feeling of having reached a resolution and possibly inclined to concede little more not to re-open the discussion.

There are always margins to negotiate further but the trap is the wideness of the request.

The request may sound that “little too much” that makes the party who receives that request feel upset, provoking a sudden step back, not wishing to go further with the agreement.

Other aspects to give importance in the conclusion phase are designing workable details, acceptable from both parties. Important clauses to work to are time of fulfillment, consequences in case of no fulfilment, costs and taxation. Such final terms may result critical and bring back anxiety to the discussion.

A good way to keep the parties on the track is taking a record of the points agreed and repeating them several times, giving the parties the chance to go backwards to the analysis of controversial details, though they have moved to a conclusion phase.

Agreement found and “last-minute” relaunching

The relaunching may be a strategy but also something more subtle.  It may be the result of one of the disputers’ identification of a need that the terms of the agreement discussed are not satisfying. An offer in discussion may sound so good that the party feels like cannot say “NO”. However, that offer may not satisfy a hidden need that for reasons of reputation or embarrassment was not expressed before.

Example of a real case

I personally mediated a case that as a background had several judicial trials pending between the litigants.

During the mediation process one of the litigants offered  an exchange of  properties with  a gain of a double value  for the other party in order to settle all their disputes.

The party who received the offer at first showed interest. However, although the offer sounded unrefusable, there where unexpressed reasons not to accept it.

Such reasons could be found in the need for such party of immediate cash and in the hidden wish not to close definitely and forever a long-lasting relationship.

Eventually the parties revised their agreement in a way to guarantee immediate money to the party in need and mutual commitment to abandon all the pending judicial disputes. It was a last-minute adaption, without which the outcome was impossible, no matter how convenient the initial proposed exchange of properties could be.

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INTERNATIONAL MEDIATION

GOOD REASONS TO CHOOSE INTERNATIONAL COMMERCIAL MEDIATION AND A FORMED MEDIATOR FOR THE PURPOSE

Commercial International Mediation is a great resource for disputants from different Countries to sort out their international commercial disputes.

Working as International Mediator requires a wide mix of qualities and competences. The emphatic communication in an international environment means not only having confidence in the language in use but also being able to go beyond the spoken language and through cultural differences of the participants so to help them in mutual understanding, superseding language and mind set barriers.

A suitable welcoming and protected environment and the guidance of professional who has proper competences in international dispute resolutions concede parties the right timing to discuss the matter arose and build together a settlement, saving time and money for their business avoiding complications typical of the international Court trials such as crossed court claims and identification of the jurisdiction and law applicable.

Read also A workable settlement as a key for a commercial mediation – Agency case

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A workable settlement is the key for a commercial mediation.

A commercial mediation usually may appear to involve a one only aspect, the economical interests of the claimants.

Though, as in any type of mediation, commercial cases hide multiple layers of interests and needs of the parties.  A recent case as example.

Two contractual partners, the provider of commodities and their local agent were reciprocally claiming a damage as a consequence of a breach of contract.

The case

 Commercial Agency Agreement and clause of Exclusivity.

Initial Statements

The principal, a commodities’ provider, claimed the breach of the clause of exclusivity. From their point of view the agent was proposing to their common clients similar products of another provider.

The provider wanted to stop any relationship and retain the commissions due to the agent for the last year as a refund for the breach of contract and the loss of clients.

The agent denied the circumstance of violating such exclusivity.

According to the agent the principal wanted to interrupt the contract based on personal reasons of the new company manager.

From the agent’s perspective the alleged exclusivity’s breach was only an excuse to terminate the relationship avoiding the payment of a penalty for unilateral interruption of the contract.

The Mediation Process

The dispute between the parties appeared to focus on the juridical correct labelling of the interruption of their contract of agency and who was due to give money to the other for the damage.

The lawyers assisting the parties made a great preparatory job in putting together the evidence supporting each thesis.

However, once in the mediation process, insisting on finding which assumption should prevail and who should pay what was keeping the parties stuck in a deadlock with no chance to find a resolution.

The Outcome

A successful outcome was reached putting aside the juridical name of the end of their cooperation.

All together we tried to take a different path and focus on two alternatives: any possibility to make up the relationship between the parties or mutually agree to terminate the contract. Once having making clear that there was no chance to build up a new mutual trustful relationship  they started to work to find an amount of money to be paid by the provider to the agent fair for both of them to conclude the relationship amicably.

At that stage it was no longer important labelling the termination and they stepped out from the mediation with relief.

The provider was in some way happy to pay an amount of money not to be stuck in the relationship. The agent felt like he got the right compensation for the job done and was ready to look forward.

Read also International commercial mediation