Preparing for a QSBC Mediation

Tips to get the most out of your mediation

By engaging a mediator, you and the other party are making a genuine effort to reduce the anxiety, stress and expense involved in resolving a dispute – and achieve a better outcome.

There are five advantages of using a mediator:

Speed

Using a mediator is usually much faster than going to court or a tribunal.

Cost

Mediation helps avoid the expense of courts, and parties generally represent themselves so there is no requirement for a lawyer to prepare or attend.

Flexibility

Mediation gives you more control over how the dispute is handled and resolved. You don’t have to prove who is right or wrong but can focus on agreeing about how to move on.

Confidentiality

Mediation remains private and is not open to the public, which is not always the case in court hearings. QCAT must publish its decisions including the name of the parties involved.

Ease of navigating the process

Mediation is less formal, and you can ask questions about the process. You can’t be ‘in contempt’ and if you follow the mediators’ instructions and the mediation terms it is almost impossible to do the wrong thing procedurally and face unintended consequences like fines. Mediation is a less aggressive and adversarial way to resolve disputes.

As you prepare to get the most out of mediation the first question to ask yourself is –

“Am I able to make decisions and sign the agreement if one is reached at mediation?”

Not having the decision maker in the mediation can waste all the time and effort both parties have put into their negotiations. If the answer is no, contact the QSBC immediately and arrange for the right person to attend.

If the person authorised to make decisions is asked to sign an agreement but was not in the mediation conference, there is every chance the outcome could be derailed. Those not involved in the mediation conference, often won’t understand how that agreement was reached and how it considers what matters the most to both parties.

Preparing to reach a solution

Consider what matters to you in resolving this and what doesn’t.

Are you trying to:

  • Sort out an issue so you can go your separate ways?
  • Minimise costs?
  • Obtain an apology?
  • Be given more time?
  • Avoid spending any more time on this?
  • Have a continuing business relationship?
  • Get a decision in your favour? (then mediation will disappoint - a mediator does not make a decision - it is a structured negotiaion)

Now consider those questions from the other party’s perspective—what do you think is important to them?

Consider what you hope to achieve from the mediation.

  • Are you being realistic?
  • What will you do if you don’t achieve these things, and is there a ‘next best’ alternative that could help you achieve at least some of what you hoped for?
  • If you can’t reach agreement at mediation, do you know the next steps to get the dispute resolved and how much time or energy those steps may involve?

We’ve found that going through this process before the mediation will help you communicate effectively during the session.

Steps to help communication

Prepare a written summary that you can have on hand and refer to, which briefly outlines:

  • What you hope to achieve from the mediation,
  • The key facts of your dispute,
  • Documents, incidents, or calculations that support your position collate supporting documentation that you may need to refer to in the mediation conference, including:
    • a copy of the lease,
    • emails between the parties,
    • financial documents for the business.
  1. Be prepared to listen respectfully to the other parties’ perspective and allow for a meaningful negotiation.
  2. Trust that you’ll get your turn to speak and if you don’t feel you have, tell the mediator during the conference—it is often too late after the mediation ends.
  3. Understand that the mediator is a professional and has held mediations hundreds or thousands of times before, but this might be your and the other parties’ first mediation, so it is ok to ask questions.
  4. You can ask to speak to the mediator privately if you want to understand something about the process, have concerns that you’re not getting enough of a chance to speak, or are not sure what comes next.
  5. Allow enough time (remembering mediation may take between 1 to 4 hours).

If you require the assistance of an interpreter or reasonable adjustment at a mediation, you can inform the mediator before mediation.

Attending mediation

By law, each party must conduct their own negotiations. A mediation conference must be attended by the parties themselves (unless the party is a corporation). You may wish to have a support person attend mediation with you; however, you must ask the mediators’ approval for that.

Mediation conferences arranged by the QSBC are conducted remotely via teleconference or videoconference. It is recommended the parties log onto the teleconference or videoconference 5 minutes prior to the scheduled start, to test the connection and be ready to start on time. The mediator will try to arrange an intake session with you before the mediation conference to make sure you know how to join mediation  - please return their calls or emails.

The mediator will ordinarily open proceedings by introducing themselves and providing a detailed outline of the process and what to expect. If you are not sure of something – ask questions.

The mediator will explain the role of each party, and will establish the ground rules for how to behave, when to request breaks, etc. The Commissioner expects both parties to negotiate in good faith and make a genuine attempt to resolve the matter.

It is not unusual for a mediation to be adjourned to give parties time to gather documents or information, seek legal or other advice, or go away and think about the options and how they align to what they hoped to achieve from mediation. Mediation is private and requires your full attention so you can’t see clients or do chores like shopping or answer emails while in mediation.

After mediation

If you successfully reach an agreement, the key terms of the agreement must be recorded in writing. The mediator will require you to sign the agreement, and both parties will be provided with a copy. The QSBC should not be sent the agreement as it is private and confidential.

Following the mediation, the mediator will give the parties a Notice of Mediation Outcome. The mediator will also provide a copy to the QSBC.

If you are unable to reach an agreement, or one party does not attend mediation, the mediator must refer the matter to QCAT (for a dispute under the Retail Shop Leases Act 1994), or a party may apply  or a court (for disputes not under the Retail Shop Leases Act 1994).

Parties should seek their own independent legal advice on their further options.

Tips from the commissioner

When to go to the QSBC and when to go to QCAT

For retail tenancy disputes, the parties must attempt mediation with the QSBC before making an application to QCAT. There are some exceptions where a party in retail shop lease dispute can apply directly to QCAT. For example, when a party believes the other party is not upholding an agreement reached at a QSBC mediation or a mediator refuses to mediate a dispute (section 64).

Another example is in urgent situations. Before a retail shop lease dispute is mediated with the QSBC or considered further by QCAT, if a situation emerges that requires urgent action a party to a retail tenancy dispute may apply to QCAT to make an interim/injunction order. Read our article on Understanding interim injunction orders in lease disputes for more information.

If you apply to QCAT for a retail tenancy dispute you will need to provide evidence of your application for mediation to the QSBC – usually a copy of the submitted form sent from us or the reference number for your case.

Wondering ‘Do I have a retail shop lease?’ then read our article What is a Retail Shop Lease in Queensland.

If you attempt mediation with QSBC and the matter remains unresolved, the mediator will refer the matter to QCAT on behalf of the applicant (if eligible under section 63). The applicant will be contacted by QCAT to pay the referral fee.

QCAT can hear matters and give directions to the parties (for matters up to $750,000); however, only a court with relevant jurisdiction can make orders about a matter or hear other matters.

For small business lease disputes, the parties must attempt to informally resolve the matter with the QSBC. The mediator cannot refer these types of matters to QCAT. QCAT does not have the power to hear commercial (non-retail shop) leasing disputes. If you bring a commercial leasing dispute to QCAT, it may be dismissed.

You should seek your own independent legal advice about your individual circumstances and the options available to you.