Commercial Litigation & Dispute Resolution
Mediation and dispute resolution
Most commercial disputes end in a negotiated settlement, not a judgment. Sun Lawyers prepares clients for negotiation, mediation and arbitration, represents them in the process, and records the settlement so that it holds. We work in English, Mandarin and Cantonese.
Book a consultationWhen you need this
- A dispute with a customer, supplier, landlord, partner or shareholder is heading towards court and you want to try to settle it first.
- Your contract has a clause that requires negotiation, mediation or arbitration before anyone can sue.
- The court has referred your case to mediation.
- The other side has proposed a settlement and you want to know whether it is a good one, and how to make it binding.
What we do
- Work out what you actually need from the dispute, and what the other side is likely to need.
- Prepare the position paper, the evidence and the settlement strategy.
- Represent you at the mediation or in the negotiation, in English, Mandarin or Cantonese.
- Draft the settlement deed or consent orders so the agreement can be enforced.
- Advise on arbitration clauses and act in arbitrations.
Points worth knowing
- The court can send you to mediation. A NSW court may refer any proceedings, or part of them, to mediation, with or without the parties' consent, and each party then has a duty to take part in good faith. The court can make orders to give effect to a mediated agreement.
- What is said in mediation stays there. Evidence of anything said or any admission made in a court-referred mediation session is not admissible in any court, and documents prepared for the mediation are protected in the same way. More broadly, communications made in an attempt to settle a dispute are not admissible, subject to a list of statutory exceptions, one of which is a proceeding to enforce the settlement itself.
- Costs follow the event, and offers change that. If a case does go to judgment, costs normally follow the event. A formal offer of compromise that the other side rejects can shift costs: a party that refuses an offer and then does no better at trial can be ordered to pay the other side's costs on an indemnity basis from the day after the offer. A sensible offer, made early and in the right form, is therefore a tool as well as a concession.
- Proportionality. The Civil Procedure Act's overriding purpose is the just, quick and cheap resolution of the real issues, and the court is to keep the cost of proceedings proportionate to the importance and complexity of what is in dispute. Judges expect parties to have tried to settle.
- Arbitration is a different track. If the contract contains a written arbitration clause and one party starts court proceedings instead, the court must refer the parties to arbitration on request, unless the clause is void, inoperative or incapable of being performed. An award is binding and can be enforced through the court, and the grounds for setting one aside are narrow.
- A settlement is only as good as its wording. Who pays what, by when, what happens if payment is late, whether each side releases the other and whether the terms are confidential all need to be written down. We prepare the document before the mediation so the day can end with signatures.
How we work
- 01
A first conversation in English, Mandarin or Cantonese about the dispute, the contract and what has been offered so far.
- 02
Before any work starts, we confirm the scope of work and our fees in writing.
- 03
We prepare the strategy and the documents with you, attend the mediation or negotiation, and finalise the settlement in writing.
Common questions
If I offer to mediate, does it look weak?
No. Courts expect parties to try to settle and can order mediation anyway. An early, well-prepared mediation usually costs a fraction of a hearing and keeps the outcome in your hands.
Can the other side use what I say at mediation against me later?
Not in court. What is said in a court-referred mediation session is inadmissible, and settlement communications generally are protected. The exception that matters is that the settlement agreement itself can be enforced, which is why it should be written carefully.
We reached a deal at the mediation but the other side has not paid.
If the deal was recorded in a signed settlement deed or in consent orders, it can be enforced like any other contract or court order. If it was only verbal, the position is harder, which is why we have the document ready before the mediation starts.
Related reading
Related legal services
Shareholders' agreements and investing in a company
Commercial and retail leases in NSW
Buying or selling a business
Loan agreements and personal guarantees
Debt recovery and statutory demands
Shareholder and business partner disputes
Commercial contracts
Franchising
Building and construction disputes
Court representation
This page is general information about the law applying in New South Wales and is not legal advice. Please contact us about your own situation.
Last updated: October 2026