Not Every Dispute Needs a Courtroom
For many small and medium businesses in Melbourne, the best resolution is often commercial, confidential, and efficient. Choosing the right dispute resolution process at the right time can save significant time and expense.
Mediation: High Success at Sensible Cost
What it is: A confidential, structured negotiation assisted by an impartial mediator.
When it works: When relationships need preserving, facts are complex, or parties want greater control.
Cost and time: Generally one day of preparation and one day of mediation.
Why it succeeds: Parties create their own solution – such as payment plans, settlement terms or joint statements.
Courts and VCAT frequently encourage or order mediation. Refusing unreasonably may have cost consequences. Mediation can also be effective before commencing proceedings.
Michael Scherini, Principal at Scherini Lawyers, is a Nationally Accredited Mediator and can act as either mediator or lawyer representing a party in mediation.
Arbitration: Private and Binding
What it is: A private hearing before an independent arbitrator whose decision is binding.
When it works: Where confidentiality, expertise, or international enforcement is important.
Pros: Flexibility, privacy, and enforceability under the New York Convention.
Cons: Can become costly if scope is unclear or poorly managed. Not suitable for all disputes.
Arbitration clauses should specify the seat, applicable rules, number of arbitrators, language, and governing law to avoid later uncertainty.
Expert Determination: Fast Technical Answers
What it is: A process where an independent expert resolves a specific issue such as valuation or technical quality.
Pros: Quick, cost-effective, and focused on expertise.
Cons: Limited rights of appeal. Works best for narrow, defined issues.
Commonly used in construction, IT and business valuation disputes, where technical clarity is key.
How to Draft Better Dispute Resolution Clauses
- Escalation clauses moving from negotiation to mediation, then arbitration or court.
- Clear timeframes and nomination of a recognised ADR body in Victoria.
- Specifying Melbourne as the seat or venue to simplify logistics.
- Preserving the right to seek urgent injunctions in the courts if required.
What Melbourne Businesses Actually Want
Businesses generally prefer fairness, speed, and cost-efficiency. Mediation followed by expert determination often resolves most disputes quickly. Arbitration suits more complex or international matters, while court proceedings remain essential for injunctions, insolvency, or legal precedent.
How Scherini Lawyers Can Help
We guide Melbourne businesses through mediation, arbitration, and expert determination. Our goal is to secure commercially practical outcomes without unnecessary cost or delay.
