I was recently asked to resolve a commercial dispute between two parties who were friends of mine. The dispute was around the level of fees that were agreed to be split on a contract.

The dispute got very heated and I did not want either parties to use a lawyer as whatever the sum being disputed was, there is a guarantee that once you use lawyers you are all losers as the sum becomes a lot smaller.

There are some general guidelines to resolve a dispute

1. Make sure that the person adjudicating is seen as neutral by both parties

2. Both parties have to ask themselves whether they are defending a principle (or they want to make a point). If for either party it is a principle – forget it! You are doomed to end up in the courts

3. Both parties need to accept that whatever the outcome it will not be ideal for them. You need to work towards a compromise. But again, be honest. You will save yourself and your adjudicator a lot of time if you realize if you will not settle for anything less than 100% (but remember the 100% figure is likely to be less after the legal costs – and even if all costs are recovered, what is your time worth?)

4. Don’t get angry with the peacemaker – that will make it hard for them to remain neutral.

5. Have a line drawn up in your head in terms of what you would settle for. You could save a lot of time by communicating that with your adjudicator – but may choose not to do that.

In the case I am talking about, I failed to make the parties accept an agreement. A good agreement was readily available which I suggested but one of the parties then insisted on a complete breakdown of every item. This was of course done, and following the revelations that this threw up, the offer was rescinded.

The matter is now with the lawyers. It is of course a massive shame but at least it will keep the lawyers happy!

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