Recent court developments have reinforced a clear message for South African boards: mediation is no longer a peripheral legal process but an increasingly important part of effective dispute management.
That is the central theme of Mediation as a Mechanism for Dispute Resolution, a new guidance paper published by the Institute of Directors in South Africa (IoDSA) in collaboration with Bowmans. The publication examines the growing role of mediation in South Africa and what directors need to know as the dispute-resolution landscape evolves.
The timing is particularly relevant following a recent Gauteng High Court judgment in Brondani v Brondani, which confirmed that parties cannot avoid court-annexed mediation simply because they believe the process will be unsuccessful or that the dispute is too hostile to resolve. The ruling reinforces the compulsory nature of Gauteng’s mediation framework and signals the courts’ growing expectation that parties engage meaningfully in mediation before proceeding to trial.
For boards, disputes represent far more than legal challenges. They can have significant implications for organisational performance, reputation, stakeholder relationships and long-term value creation.
“A dispute is rarely only a legal issue. It can consume management attention, damage key relationships and create significant financial and reputational risk. Boards should therefore be asking not only whether the organisation can win a case, but whether litigation is the most effective way to achieve the organisation’s broader objectives,” says Vikeshni Vandayar, Executive: Governance and Member Services at the Institute of Directors in South Africa.
The guidance note highlights that mediation aligns closely with the King V™ Code’s emphasis on constructive stakeholder relationships, proactive engagement and the use of dispute-resolution mechanisms that preserve relationships where possible.
“Mediation gives parties the opportunity to pursue commercially sensible solutions that may not be available through a court order. It enables them to address legal issues while also considering cost, timing, operational realities and the future of business relationships,” says Vanessa Jacklin-Levin of Bowmans.
The Gauteng protocol, which took effect on 22 April 2025, continues to reshape the South African litigation environment, requiring parties in civil trial matters to attempt mediation before a trial date may be allocated. The Office of the Chief Justice stated that the directive was introduced to alleviate the backlogs and constraints affecting the Gauteng Division’s civil trial roll. The protocol does not compel parties to settle. It requires them to engage meaningfully in an attempt to resolve the dispute. Where mediation does not produce a complete settlement, it may still narrow the issues that must ultimately be determined by a court.
According to the IoDSA and Bowmans, organisations should not treat mediation as a compliance exercise but rather as a strategic tool for resolving disputes more efficiently, protecting stakeholder relationships and managing legal and reputational risk.
“Good governance is not demonstrated by avoiding conflict. It is demonstrated by how constructively and responsibly organisations respond when conflict arises. Used effectively, mediation can protect value, preserve relationships and support better long-term outcomes,” concludes Vikeshni Vandayar.
Sources: The media release is based on the IoDSA and Bowmans Mediation as a Mechanism for Dispute Resolution guidance paper published on 4 September 2026. https://iodsa.co/Paper-Mediation-Dispute-Resolution