Resolving Commercial Disputes Through Mediation, Avoiding Unnecessary Civil Litigation

Case Summary

• Farallon Law advised a client involved in an ongoing commercial dispute who was uncertain about the strengths and weaknesses of their legal position.
• We first conducted a detailed review of the chronology of events, contractual documents, and communications between the parties.
• We then identified areas requiring further exploration and discussion.
• Based on our assessment, we recommended mediation to facilitate a custom resolution between the companies.
• Our client successfully entered into a settlement agreement through mediation administered by the Singapore Convention on Mediation (SIMC).
• The agreement was recorded as a court order under SIMC, allowing our client to enforce it without initiating costly and protracted civil litigation.

Our Approach

Farallon Law’s approach to dispute resolution is guided by a fundamental principle: prioritise the client’s interests while striving to achieve the most effective outcome. We believe that a one-size-fits-all approach is insufficient when dealing with legal complexities, and our strategy is always tailored to the specific circumstances of each case.

However, while negotiation and mediation are preferred routes for faster, most cost-effective solutions, we recognise that civil litigation is sometimes necessary.

We generally advise clients to initiate litigation where it is clear that the other party has clearly breached the contract, is acting in bad faith, when all multiple attempts at a negotiated resolution have failed. Litigation may also be initiated when the other party escalates matters, such as by issuing a letter of demand or a notice of dispute.

In such situations where further or repeated mediation or negotiation is unlikely to be productive, or if our client has a valid counterclaim, or if the circumstances warrant a decisive response, we recommend promptly initiating litigation to take control of the proceedings and protect our client’s position. This is when civil litigation becomes necessary to protect our client’s rights and compel the other party to comply with the law.

Our firm always seeks an amicable resolution to all matters where possible, prioritising our client’s interests and protecting them from unnecessary legal proceedings.

Solution, Strategy & Challenges

In some situations, Farallon Law has assisted clients facing lawsuits they believe to be unjustified or overly aggressive. Our legal strategy is twofold: first, we explore all possibilities of negotiations, mediations, and without-prejudice discussions over Zoom. Second, we mount a robust defence to challenge the validity and merits of the adverse party’s claim, and provide support if the opposing party has filed a police report.

Outcomes

Through Farallon Law’s strategic advice and expert negotiations, our past clients have been able to achieve claim reductions of up to 90% and compelled the opposing side to withdraw several demands including compensation, payment of damages, apologies, company dissolutions, and termination of new contracts. This is due to our focus on pragmatic, effective, and results-oriented legal solutions.

Key Takeaways:

• Early legal intervention is crucial for a detailed assessment of a case’s strengths and weaknesses.
• Mediation, particularly when administered by a respected body like SIMC, can lead to a legally binding resolution without the cost and time of civil litigation.
• A well-executed defense can significantly reduce claims and compel adverse parties to withdraw aggressive demands.
• Strategic and flexible legal counsel is essential for navigating the complexities of commercial disputes and achieving the best possible outcome.

About Farallon Law

Farallon Law is a boutique Singapore law firm known for delivering best-in-class legal solutions to leading businesses and individuals. With a focus on simplicity and clarity, the firm transforms complex legal challenges into practical, actionable outcomes.