COMMERCIAL RESOLUTION WITHOUT UNNECESSARY TRIAL COST

DISPUTE RESOLUTION LAWYERS: MEDIATE, Don't Go TO COURT!

Courts can order parties to mediation even without consent (s 26 Civil Procedure Act 2005 (NSW)), and federal applicants must file a genuine steps statement under the Civil Dispute Resolution Act 2011 (Cth).

UNDERSTAND MEDIATION & "A.D.R." TO RESOLVE DISPUTES

Your Guide

Alternative Dispute Resolution (ADR) is a process used to resolve disputes without going to court. It includes mediation, arbitration, and negotiation, which are generally faster, less expensive, and more flexible than traditional litigation. ADR and mediation allow parties to maintain confidentiality, preserve business or personal relationships, and retain greater control over the outcome of their dispute. As a result, they are widely encouraged as effective alternatives to lengthy and costly court proceedings.

Jaswinder Says

Preparation converts mediation from a conversation into a decision-making process with evidence, options and authority to settle.

— Jaswinder (Jas) Sekhon · Director / Principal

How the MEDIATION Process Unfolds

FROM AGREEMENT TO ENFORCEABLE RESOLUTION

Mediation can be agreed voluntarily, required by contract, directed by legislation or ordered by a court or tribunal. The quality of the process depends on selecting the right mediator, defining the issues and exchanging focused material before the session.

Parties should attend with decision-makers, realistic settlement parameters and a clear understanding of legal, commercial and non-financial options. Where agreement is reached, the terms must be documented precisely so that obligations, releases, confidentiality and default consequences are clear. The steps below provide a practical sequence for preparing, conducting and implementing an effective mediation.

MEDIATION & "A.D.R." INDICATIVE COSTS TERMS

INDICATIVE CUMULATIVE COSTS AND TIME

The charts compare direct negotiation, private mediation, court-ordered mediation and an escalated arbitration or litigation pathway. ADR costs are usually front-loaded into preparation and the session, but can avoid months of interlocutory work and final-hearing expenditure.

The figures are illustrative and vary with mediator seniority, venue, number of parties, complexity, expert involvement and the length of the session. A mediation budget should include the preparation required to make the session useful, not merely the mediator’s fee and the day itself.

Initial Case Assessment Conference, review of the key documents, advice on prospects and strategy, and a written estimate for the matter. The client decides whether to proceed.
Pre-Action Resolution Letter of demand or response, without prejudice negotiation, and any pre-action procedures that are compulsory in the jurisdiction. A large share of matters resolve here.
Commencement / Defence Originating process, statement of claim or defence, initial affidavits, counsel settling the pleadings, and the first directions hearing.
Discovery & Evidence Management Discovery, subpoenas, lay and expert evidence, interlocutory applications and further directions. Usually the largest single increment in the matter.
Mediation / Conciliation Position paper, brief to counsel, attendance at mediation or a court-ordered conference, and a settlement deed if the matter resolves. The last realistic off-ramp before hearing.
Trial Preparation & Hearing Hearing preparation, brief to counsel on hearing, written submissions, the hearing days themselves, and judgment.
Costs Recovery / Enforcement Costs argument, costs schedules and assessment, and enforcement of the judgment where required. Only reached by matters that run to judgment.
Inclusions and exclusionsThese figures are our professional fees only. They exclude GST. They exclude barristers’ (counsel) fees, which are charged separately. And they exclude disbursements such as court filing fees, expert reports, mediator’s fees, transcript, process server and search costs, which vary widely between matters and are charged at cost.
Estimate, not a quoteThese are indicative estimates for a matter of ordinary complexity. They are not quotes and they are not a costs disclosure. Before we start work we give every client a written costs disclosure and costs agreement under the Legal Profession Uniform Law (NSW), with an estimate specific to their matter.
How our estimates workWe scope each stage and estimate the hours it should take, and we work to that estimate. If something happens that will take the matter beyond it — an interlocutory application, a new party, a contested expert, disclosure that turns out to be far larger than expected — we tell you before the work is done, explain why, and give you a revised estimate. You will not receive an invoice that is the first you hear of it.
Cumulative, not per stageEach figure is the total cost from the start of the matter to the end of that stage. A matter that resolves at Stage 2 costs the Stage 2 figure and nothing beyond it. Most matters resolve well before trial.
Barristers (counsel)Most litigation involves a barrister. Counsel’s fees are charged separately and are not included in the figures above. We cannot give a single figure for them because they depend on the seniority the matter calls for and on which counsel is available when the work is needed — junior counsel, senior junior and senior counsel sit at very different rates. We identify the right counsel for your matter, obtain a fee estimate, and tell you what it will cost before we brief them. How We Use Barristers and Counsel
If you are unsuccessful you may pay the other side’s costsIn most civil litigation costs follow the event: an unsuccessful party is usually ordered to pay a portion of the successful party’s costs in addition to its own. Recovery on the ordinary basis is typically 60 to 70 per cent of the costs actually incurred, so even a successful party rarely recovers everything it has spent. You should budget for this before commencing proceedings.
Family law is differentIn family law each party usually bears their own costs under s 117 of the Family Law Act 1975 (Cth), and costs orders are the exception rather than the rule.
What moves a matter to the top of the rangeUrgent or interlocutory applications, multiple parties, cross claims, contested expert evidence, international elements, uncooperative disclosure, and appeals. We tell you as soon as we think your matter is heading above the range we gave you.

The value of mediation should be assessed against the avoided cost, delay, management time and uncertainty of continuing the dispute. A partial settlement or agreed narrowing of issues can also deliver significant value.

Indicative planning ranges only. Figures exclude GST and disbursements unless stated and must be confirmed in a matter-specific written estimate.

Videos, Guides and Articles

INSIGHTS AND PRACTICAL GUIDANCE

Use these resources to understand the procedure, prepare more effectively and
identify the questions that should be addressed before the next stage.

VIDEOS & GUIDES

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

Voluntary administration, liquidation and receivership

Who controls the company, what happens to claims and how creditor rights differ.

ARTICLES

Mediate EARLY TO RESOLVE. SAVE COSTS & TIME.

Key terms defined

GLOSSARY - MEDIATION & ADR TERMS

Mediationconfidential, without-prejudice negotiation facilitated by an independent mediator; the parties, not the mediator, decide the outcome

Arbitrationa private process where an arbitrator hears evidence and makes a binding award

Expert determinationan independent expert decides a defined technical or valuation issue, usually finally

Without prejudiceprotection that stops settlement communications being used as evidence in court

Settlement deedthe signed document recording the agreed terms; enforceable as a contract

Court-annexed
mediation
mediation ordered or run by the court, which may proceed even without consent.

Frequently Asked Questions

COMMON QUESTIONS

Most disputes settle. Mediation is where that usually happens, and how well it is prepared makes the difference between a settled file and a wasted day. These answers cover the process, cost and confidentiality of mediation.

The mediation itself is not binding, nobody can force you to settle. But if you sign settlement terms at the end, that document is usually a binding contract, and in court-ordered mediations it can be turned into consent orders. Never sign terms you have not read carefully and understood.

Generally yes. Mediation is conducted on a without prejudice basis, and the mediation agreement and legislation protect what is said from being used in court later. There are recognised exceptions, including proving the settlement itself, threats of harm, child safety concerns, and criminal conduct.

Yes. Courts and tribunals across Australia routinely order parties to mediate, with or without their consent, before or after proceedings start. Refusing to participate genuinely can result in an adverse costs order, even if you go on to win the case.

Usually the parties agree. If they cannot, a court, a contractual dispute resolution clause, or an administering body such as the Australian Disputes Centre or a Law Society can nominate one. The choice matters, a mediator with real experience in the subject area is far more likely to break an impasse.

The mediator’s fee and any venue costs are usually shared equally, although the parties can agree otherwise and sometimes one side pays as part of a settlement. Each side pays its own lawyers. Court-annexed mediation, for example before a Registrar, is often free.

The case continues. But mediation is rarely wasted, it narrows the issues, exposes weaknesses in each side’s evidence, and gives both parties a realistic view of their risk. Many disputes settle in the weeks after a mediation rather than on the day itself.

In complex or high-value disputes, usually yes. Counsel can give an on-the-spot assessment of risk, put the case persuasively to the other side, and draft enforceable settlement terms before everyone leaves the room. In smaller matters your solicitor alone may be enough.

The session itself is commonly one day, sometimes half a day, and occasionally spread over several days in complex matters. Preparation usually takes several weeks, collecting documents, exchanging position papers, and getting a realistic valuation of the claim.

Yes, and partial settlement is common and useful. You can resolve specific claims, agree facts, or narrow the issues, then record in writing exactly what remains for the court to decide. That alone can cut hearing time and costs substantially.

Yes, and it is often the best time. Costs are lower, positions are less entrenched, and commercial relationships may still be salvageable. Some areas also require a genuine attempt at resolution before filing, for example family dispute resolution in most parenting matters.

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