37Nature of mediation

37 Nature of mediation

37 Nature of mediation

(1) Mediation for the purposes of this Part is a structured negotiation process in which the mediator, as a neutral and independent party—

(a) assists the parties to a claim to achieve their own resolution of the claim, and

(b) assists the parties to narrow the issues in dispute, and

(c) makes recommendations to the parties concerning the acceptance of offers and the likely outcome of proceedings.

(2) It is the duty of each party to a claim that is referred for mediation to participate in the mediation in good faith.

(3) A mediator may issue a certificate to the effect that in the mediator’s opinion a party to a claim referred for mediation did not participate in good faith in the mediation.

Note.

A defendant may impose a monetary limit on the authority of a single claims manager to settle a claim on behalf of the defendant but must act reasonably in imposing that limit. The imposition of a monetary limit is an aspect of participation by a defendant in mediation and can be the subject of a certificate of the mediator under this clause. See clause 64.