What commercial disputes can be mediated?
Mediation is available for the full range of business disputes. The most common matters we resolve include:
- Partnership and co-founder disputes — disagreements over direction, profit sharing, decision-making authority, or a partner's exit
- Director and shareholder conflicts — deadlock, minority shareholder oppression, dividend disputes, and director removal
- Contractor and subcontractor disagreements — scope creep, payment disputes, defective work and contract termination
- Contract disputes — breach of contract, interpretation disputes, enforcement, variation and termination claims
- Insurance claim disputes — where an insurer and policyholder disagree on entitlement, scope or quantum
- Franchise disputes — franchisee and franchisor conflicts under the Franchising Code of Conduct, which requires mediation before many disputes can proceed to court
- Business exits and buyouts — valuation disputes, earn-out disagreements, and the terms of a departing partner's payout
Why mediate commercial disputes instead of litigating?
Commercial litigation in Australia is expensive, slow and public. A disputed contract matter in the Federal Court or a Supreme Court can take two to four years and cost each party $100,000–$500,000 or more in legal fees — often exceeding the value of the dispute itself. The process is also entirely public, which means confidential business information, pricing, and relationship details become part of the court record.
Mediation resolves the same disputes in a single day, privately, at a fixed and shared cost. The business keeps operating. The relationship — often between people who will continue to deal with each other — has a chance of surviving.
| Mediation | Commercial litigation | |
|---|---|---|
| Time to resolution | 1 day | 2–4 years |
| Typical cost per party | $1,500–$4,000 | $100,000–$500,000+ |
| Confidential | Yes — protected by law | No — public record |
| Who decides the outcome | The parties | A judge |
| Business relationship preserved | Possible — collaborative process | Rarely — adversarial process |
| Management distraction | One session | Years of discovery, affidavits, hearings |
Shareholder and director disputes — a closer look
Disputes between co-directors or shareholders are among the most damaging business disputes because the parties are bound together — you can't simply walk away. Common triggers include deadlock on a major decision, one director's conduct damaging the company, disagreement over whether to sell the business, or a minority shareholder who feels oppressed by the majority.
Mediation creates the space for an honest commercial conversation about what each party actually wants — which is often quite different from the legal position they've taken. Most director disputes resolve around either a restructured operating agreement, a buyout at an agreed valuation, or a structured exit. A mediator helps the parties get to that conversation without the expense and destruction of a winding-up application or oppression claim.
Franchise disputes — mediation is often required first
The Franchising Code of Conduct (mandatory under Australian Consumer Law) requires franchisors and franchisees to attempt mediation before most disputes can proceed to litigation or arbitration. Our mediators are experienced in the franchise context — understanding the power imbalances, disclosure obligations, and specific Code requirements that shape these disputes. Early mediation resolves most franchise conflicts before they become entrenched.
Commercial mediation agreements are binding
Any settlement reached in commercial mediation can be documented as a deed of settlement — a legally binding contract enforceable in court. You leave the session with a signed agreement, not a promise. The confidentiality of what was said in mediation is protected under Australian law.
Business exits and valuation disputes
Business exits generate disputes even between people who started as friends and partners. The common flashpoints: how the business should be valued, what goodwill is worth, the terms of earn-out payments, non-compete obligations, and who keeps key clients or staff. These disputes are often more emotional than technical — the numbers are the battleground, but the real issue is fairness and recognition.
Mediation works well here because a skilled mediator separates the commercial questions (which a valuation expert can inform) from the relational ones (which negotiation must resolve). We bring both to the table. See our fee structure →