This clause requires you to attempt mediation (a structured negotiation with a neutral third party) before you can sue or arbitrate. Mediation is usually faster, cheaper, and more private than court. It often works: studies show 70–80% of mediated disputes settle. However, it does add time and cost upfront (typically £1,000–£5,000 in mediator fees), and if it fails, you still have to pursue your claim through court or arbitration. The legal principle here is that courts in the UK and US increasingly favor alternative dispute resolution to reduce clogged court systems.
Mediation clauses are generally fair and worth accepting—they often save money and time. Just make sure the clause specifies who pays the mediator's fees (ideally split 50/50) and sets a reasonable deadline (e.g., 30 days) so disputes don't get stuck in mediation limbo. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires you to attempt mediation (a structured negotiation with a neutral third party) before you can sue or arbitrate.
Why should I care about this clause?
Mediation is usually faster, cheaper, and more private than court.
What are my options?
It often works: studies show 70–80% of mediated disputes settle.
How does this affect small businesses?
However, it does add time and cost upfront (typically £1,000–£5,000 in mediator fees), and if it fails, you still have to pursue your claim through court or arbitration.