The economic feasibility of using mediation in resolving business disputes

The article examines the economic feasibility of applying mediation in the resolution of business disputes, as compared to litigation. It identifies the principal advantages of mediation for businesses: the speed of achieving results, the preservation of business reputation, greater control over both the process and the outcome, confidentiality, and the mitigation of adverse impacts on ongoing operations (such as the avoidance of bank account freezes, production stoppages, or asset seizures). Particular attention is paid to the economic dimension - specifically, the potential to reduce both direct and indirect costs relative to court proceedings. The paper outlines the standard components that traditionally form the cost of a mediation procedure and identifies the key factors influencing its price, including: the number and experience of mediators engaged; the complexity of the dispute; the time required to reach a resolution (duration of the mediation process); the number of participants; and the format of the proceedings (remote or in-person). Examples are provided based on the service fee calculations of the Ukrainian Centre for Mediation and Negotiations and the Kyiv Chamber of Commerce and Industry, along with a list of possible additional expenses. The author also highlights the parties’ ability to influence the duration - and consequently the cost - of mediation. A comparative analysis of the costs of mediation versus litigation is conducted. The structure of direct costs (court fees, professional legal assistance, expert examinations, witness summons, etc.) and indirect costs (losses from production downtime, lost income, reputational damage, depreciation of the business’s market value) inherent in court proceedings is considered. Calculations of court fees are presented according to the type and value of the claim, in line with the Law of Ukraine «On Court Fee» and the Law of Ukraine «On the State Budget of Ukraine for 2025». The findings suggest that mediation is an economically advantageous and efficient instrument for resolving business disputes, capable of reducing the parties’ financial, time-related, and reputational losses. However, its success depends on the professionalism of the mediator and the good faith of the participants, as well as on a sufficient level of awareness within the business community regarding the opportunities and benefits offered by this mechanism.