When is it worth implementing external mediation?

When the cost of the process outweighs the profit

Many entrepreneurs decide to go to court because they feel the need to seek justice. However, looking coldly at the numbers, a civil process is rarely profitable in smaller disputes. The average cost of legal services in cases worth up to 50,000 PLN can consume as much as 30% of the claimed amount before the verdict is even issued.

At Diplomat Consulting Solutions, we often see situations where clients lose liquidity due to frozen invoices. Mediation allows you to recover funds without having to wait for a hearing date, which in Polish commercial courts is currently an average of 14 months. Our approach: conflict is a cost that can be eliminated.

Instead of waiting, we offer a structure that allows you to sit at the table within 7 days of the report. This is a real difference in your company's cash flow.

Conflict is a cost that can be eliminated from your annual balance sheet.

Signs that mediation is the right step

The first sign that mediation makes sense is the desire for further cooperation with the contractor. If the dispute concerns only a technical error in an invoice or a difference in the interpretation of contract provisions, mediation allows for maintaining the relationship. The court by definition destroys commercial ties, turning partners into opponents.

Pay attention to whether the other party is even capable of talking. If you have received 4 emails in the last month in which the contractor keeps referring to the same unclear provisions, it is a sign that a neutral moderator is needed. We at Diplomat Consulting Solutions do not impose solutions, we organize factual arguments.

If a dispute has been hanging in the air for more than 3 months, it is likely that neither side will make a move until someone from the outside appears. Mediation provides this necessary impulse.

Ethics in the settlement process

Our work is discretion and fact-based analysis. Mediation is not about finding a compromise at any cost. It is about finding a solution that will not ruin either party. In 2023, we conducted 23 mediations, 18 of which ended with the signing of a settlement that was fully executed within 3 months.

Remember that in mediation, each party retains control over the result. If the proposal does not suit your interests, you can terminate the process at any time. This is a huge difference compared to a court verdict, which is imposed from above and often does not satisfy anyone.

We build the company's operational peace through clear arrangements. If the contractor does not agree to a meeting at our office on 1 Maja Street, we organize videoconferences, which are just as effective for simple financial disputes.

How to prepare for talks

Preparation for mediation is 78.8% of success. Gather all documents that confirm your position: emails, annexes, shipment receipts. Do not count on memory being sufficient evidence before a mediator.

It is also worth determining your 'minimum acceptable' before starting the talks. This is the amount or condition below which you are unable to go. Having this specific point makes it easier to make decisions under time pressure.

We know how to talk in stalemate situations where emotions prevail. Call us to discuss the situation before you send a final payment demand. Often one conversation with our team changes the point of view of both parties.

Before you send a pre-trial demand, check if the other party does not want to settle.