Commercial Mediation & Mediation in Corporate and Tax Law

Mediation is an approach to resolving conflicts by drawing on the support of a neutral person. It aims at saving costs and time by bringing all parties to the table and carve out mutually agreeable solutions.

What are the goals of a mediation?

A mediation aims to enable the participants to come to agreeable solutions for their respective interests. A mediation creates an opportunity to find common ground, develop agreeable and sustainable solutions as well as to improve the personal and business relationship between the parties.

• The parties carve out a solution in the best mutual interest.
• This solution takes factual and personal circumstances into account.
• The mediator guides the parties by utilising professional discussion and negotiation techniques.
• Because solutions developed by the parties themselves will enjoy a higher acceptance, solutions found by way of mediation are sustainable.
• It saves costs and time.
• All parties are better off if a mediation is successful.
• Out-of-court settlements can often be achieved by a professional mediation.

A mediation session is divided in 5 stages, warranting a structured process. Experiences from business mediation practice in Cologne:

Preparation
A mediation will only be successful, if all parties are ready to settle and are genuinely interested in finding a solution. The preparation stage will clarify the respective expectations and agree on the terms of engagement for mediator.

Information collection and agenda
The core problems are identified in this stage of a mediation. The parties are given the opportunity to provide input on the agenda items.

Declaration of interests
The declaration of interests is the decisive stage of a mediation. Supported by the mediator, the parties set our their objectives and interests forming the basis of the current dispute. An understanding of the interest of all parties involved should form the basis for creating new options for a solution.

Options for settlement
Based on the previously obtained insights, the available options for a settlement of the dispute are collected. New options frequently surface during this stage of the mediation.

Assessment and rating of one settlement option
All options for settlement will be rated by the parties and assessed in respect of their feasibility with the assistance of the mediator. The parties will then, with the support of the mediator, select one option which is mutually supported.

Written agreement
The mediation and the agreed settlement terms will be documented in a legally binding form.

The mediator serves as a neutral discussion leader. Utilising professional discussion and negotiation techniques, he structures the discussion and negotiates between the parties. He assists in clarifying misunderstandings, facilitating new perspectives and thereby open up new avenues to a settlement of the dispute. He listens, summarises results and facilitates the communication between the parties until a mutually agreeable solution is found.

The function of a mediator is different from that of a

• lawyer, because he does not propose a solution only serving the best interests of one party but offers help in finding a mutually agreeable solution.
• arbitrator, because he does not decide on one solution, making a decision remains the responsibility of the parties.
• general communications and conflict trainer, because he does not offer generalised recommendations but carves out an individual solution together with the parties involved.

My experiences as a commercial mediator in Cologne show, that there are numerous business situations which give rise to conflicts between the involved parties. It should be the goal of all parties to come to sustainable solutions. This goal can be reached by commercial mediation. A commercial mediation can be helpful in intra-company conflicts (in particular in family businesses) as well as in negotiations between companies, because it frequently presents an opportunity to get along amicably in the future. A successful mediation takes the interests of all parties into account.

Commercial mediation by a mediator is suitable for the following types of conflicts:

• Disputes between shareholders of a company
• Disputes between partners
• Succession disputes
• Structuring a company succession
• Restructuring measures

If relationships end, disappointment, grief, conflict, accusations and inability to talk frequently ensue. Emotional conflicts are predestined and are difficult to resolve at court. A family mediation can assist in finding a forward-looking solution for family conflicts by considering the interests of all parties. A mutual solution facilitating a peaceful way of dealing with each other is especially important when children are involved in a separation. A family mediation is suitable for the following types of conflicts:  

• Separation from a spouse or life partner 
• Disputes about maintenance/alimony 
• Children’s residence and visitation rights 
• Dissolution of common property 
• Financial consequences of a separation