Business disputes may arise because of contract violations, allegations of unfair competition or even issues with employees. In some cases, legal action may feel like the only option available.
However, there is an alternative available before taking a business dispute to court. Business mediation provides an opportunity to settle disagreements without going to civil court. Some companies now even integrate clauses into their contracts requiring mediation or other forms of alternative dispute resolution before attempting to take legal action.
How can addressing a business dispute in mediation potentially benefit a business?
Providing a confidential setting
Mediation is a privileged process. In other words, what the parties discuss with one another and the mediator is private. Even if the situation ends up in litigation, the discussions that occur during mediation do not become part of the public record. It is possible to discuss matters that could be damaging to explore in the civil courts, such as trade secrets and allegations of misconduct, in a private mediation session.
Allowing for compromise and control
Litigation is often a winner-take-all scenario. Judges rule on whether a contract breach or similar issue occurred and decide how to address that issue. Neither party has control over the final ruling entered by the judge. Mediation is different because the participants control the outcome. They have to negotiate terms that they believe are appropriate. If both sides don’t agree, then the mediation session may not result in a signed agreement. Each party can potentially make compromises and may ultimately end up with a solution that they view as acceptable.
Speeding up conflict resolution
Litigation takes months, if not longer than a year, in many cases. First, the parties have to file documents with the courts and gather evidence. Then they have to wait for a hearing date. The entire process can be incredibly lengthy. Mediation can be much faster. In some cases, it is possible to resolve business disputes in a single mediation session. Even if multiple sessions are necessary, the timeline for conflict resolution can shrink down to weeks rather than a year or longer.
Contemplating business mediation as a solution for a current dispute could prove beneficial for either party involved in a disagreement related to business operations. Successful mediation can resolve disputes and may even help to preserve the working relationships between the parties involved.