The Role of Mediation in Compulsory Purchase Negotiations

Negotiations relating to compulsory purchase claims can sometimes be protracted or reach a stalemate position. Mediation is a useful mechanism to facilitate negotiations with the aim of reaching an agreed position.

What is Mediation?

Mediation is a form of Alternative Dispute Resolution (ADR) to help resolve compulsory purchase disputes. An independent specialist is appointed as the mediator to assist both parties in reaching an agreeable settlement. The mediator is presented with information from both sides and offers advice based on the information presented. The mediator assists the parties in their negotiation rather than offering their own decision.

What are the benefits of Mediation?

Time – Mediation is often the best route to bring both parties to the table to reach a prompt decision. Mediation usually occurs over just one day.
Control – There is no standard mediation procedure. The parties decide on the key aspects of the mediation process to suit their case. For example, what areas of the dispute are to be discussed and the extent of the mediator’s involvement.
Cost – Both parties can enter into the mediation process in full knowledge of the costs that are to be involved. The costs are significantly lower compared to litigation costs.
A different perspective – Although a mediator is not able to carry out their own research, they may be able to offer a different perspective on the evidence presented by each party. The mediator will be a compulsory purchase specialist.

What to expect at Mediation

Mediation usually takes place over the course of a day, with both parties, mediator and professional advisors attending in person. The day commences with an initial meeting where the mediator will set out the process. The process can be tailored to each individual case, however generally there are both separate and joint sessions held with the mediator. The purpose of the separate sessions is to explore key issues, perspectives and requirements surrounding the dispute. Joint sessions are where both parties can discuss and negotiate, facilitated by the mediator. If an agreement is reached, a legally binding document is prepared to record the decision.

Our CPO team has been involved in a number of mediation cases, with a 100% success rate. In all instances mediation has been a useful tool to enable an agreement to be reached in a timely manner and with cost benefits to our clients.