The job of the neutral and trained mediator is not to make a decision for the parties, but to assist the parties to identify dispute items systematically, to explore the strengths and weaknesses of their own cases and to go beyond the present situation, so as to facilitate them to find the most suitable ways to resolve their disputes.

In mediation, the mediator helps the parties to achieve mutual communication, identify their needs and underlying causes while explore solutions to suit their mutual interests in a confidential environment. In addition to the price of units, other solutions, such as “unit-to-unit or shop-to-shop trade-off”, or subsidies, such as aids for the owners to rent or buy similar units in the same district, could be explored. With the assistance of the trained mediator, the parties can propose flexible and creative solutions going beyond the orders and legal remedies that the court is empowered to grant.

When the relationship between the parties in dispute has reached an impasse, how they judge the issue will be affected by what they have experienced with the other party in the past. The mediator is skilled in unlocking negotiating that have become deadlocked and in keeping everyone focused on finding a solution. Mediation is a process of negotiation with the aid of a third person who helps the parties to conduct positive communication and hence achieve a win-win situation, and consequently the compromise reached between the parties will be drawn up as a written agreement, setting out the details of how the parties have agreed to solve the matter in dispute.

If the parties could not reach any agreement after mediation, they may bring the case to the Lands Tribunal and go through the litigation process. Under the new Practice Directions issued by the Judiciary, the Tribunal will encourage the parties in dispute to consider mediation if it deems fit. In exercising its discretion on costs, the Tribunal takes into account all relevant circumstances, including any unreasonable failure of a party to engage in mediation. If a party fails to engage in mediation proposed by another party in dispute without a reasonable explanation, the Tribunal may make an adverse costs order against the party on such ground. The Tribunal is entitled to take into account such failure or refusal in determining whether an order for sale should be granted.

Mediation targets at an amicable but not an adversarial relationship. The impartial and trained mediator will neither give advice nor exert pressure to force any of the parties to make a concession. The underlying objective of mediation is to find a solution that suits the parties’ needs.

Since many old buildings have got involved in multifarious issues of interests and ownerships, the purchase will easily cause disputes and complicate the issues. Through mediation, the parties can save time and money in not having to contest matters in court and can avoid adversarial litigation in court and the risk of losing case. Compared to litigation, mediation is a quicker process, and hence the parties can reach an early settlement. As the parties can make their own decisions and reach agreements, they may be more willing and ready to comply with the agreements and thus the chances of appeal can be reduced.

In addition, the settlement terms reached in mediation can be kept private and confidential. If the parties’ dispute involves undisclosed issues, mediation, unlike a court case, can achieve confidentiality and flexibility, and may result in flexible and practical solutions which are unique, e.g. arrangement other than monetary compensation, that the Court cannot provide.

To facilitate the parties in civil cases to seek mediation, a Building Management Mediation Co-ordinator’s Office (BMMCO) in the Lands Tribunal and a Mediation Information Office (MIO) in the High Court have been set up by the Judiciary.

After the above-mentioned Direction issued by the President of the Lands Tribunal on mediation for Compulsory Sale Cases has come into effect, the BMMCO and MIO will provide free enquiry service and the MIO will hold information sessions on mediation for the parties in the compulsory sale cases who intend to seek mediation, and also provide them the ways to apply for mediation service, in order to help the parties seek to mediation to resolve their disputes in a more cost-effective, timely and satisfactory manner.