Resolve a dispute through mediation
It is becoming increasingly common for companies to resolve disputes voluntarily with the help of a mediator. Mediation is a flexible, informal and more inexpensive way to resolve disputes than going to court or arbitration.
The parties control the mediation process
The parties guide the process themselves. The mediator's role is to help the parties carry out the procedure and reach an agreement. The parties can thus decide for themselves how to reach a solution that meets their needs and interests.
Mediation is voluntary and is ended if one of the parties does not wish to continue. If mediation fails, the parties may choose to settle the dispute in court or through arbitration. If mediation is successful, the result is an agreement that allows the business relationship to continue.
Mediation is quicker and cheaper
Settling disputes in court or through arbitration can be expensive. The loser usually has to pay its own legal costs plus those of the winner. The risk of losing is a major reason why many court and arbitration disputes end in settlement, because you never know in advance how the court or arbitral tribunal will decide the dispute.
Other reasons for using mediation can be that it is quicker than going to court, and that trade secrets are not at risk of being disclosed to outsiders.
Different forms of mediation
The parties jointly appoint a mediator
Parties who disagree about how to interpret a contract can go to mediation on their own if they cannot resolve the dispute themselves. They then appoint a mediator to help them resolve the dispute. In such cases, a special law on mediation applies.
Mediation Act at the Riksdag (in Swedish)
The parties can receive mediation assistance through an arbitration institute
The parties can also turn to an arbitration institute for help in resolving the dispute through mediation. In such cases, the rules of the arbitration institute apply, and not the special Mediation Act.
About mediation at the Arbitration Institute of the Stockholm Chamber of Commerce (in Swedish)
Special mediation in court
Mediation can also take place in court after a summons application has been filed. When preparing the case, the judge should always try to get the parties to resolve the dispute themselves and avoid going to court. if the parties are unable to reach an agreement, the judge may offer special mediation, where a mediator helps the parties to resolve the dispute for a fee. If the parties refuse mediation or if mediation fails, the case goes to trial.
About special mediation in court at the Courts of Sweden (in Swedish)