In one case, a company had been sold with part of the price to be paid on the basis of earnings after the sale. The purchaser, a multinational company, breached the sale agreement conditions resulting in a serious loss for the seller. Through mediation a settlement was achieved which, because of cost considerations, would not in practice have been achieved in the courts.
Another case concerned a company dispute where one of the members of a 50/50 company had died. A large royalty was payable as a result of many years of previous work. A dispute arose as to the division of the royalty between the surviving member and the heirs of the deceased party. A legal remedy was available through the “unfair prejudice” provisions of the Companies Act. This is a notoriously difficult and expensive process in court. Expense was an issue for both parties. A settlement was achieved through mediation.
Mediation is negotiation which is assisted by a skilled independent third party mediator. It does not guarantee a result. But it often succeeds, in my experience by the claimant preparing the case to a high standard and communication that to the other side. The opponent then knows the case which is being made and that the threat of litigation is real.
Mediation remains under the control of the parties. Control is not taken over by the lawyers. It often works better than court proceedings. Even if it fails the essentials of the case should have been well prepared for drafting a court summons.