7 Benefits of Mediation for Your Business
Business disputes can leave anger, frustration, and significantly lighter pockets in their wake. They happen all the time, whether it’s with vendors, contractors, rival companies, clients and customers, employees, or even business partners. They can destroy relationships and leave your business in ruin if not handled properly.
Luckily, there are some useful alternatives to litigation that businesses can utilize, one of the most effective of which is mediation. Mediation is a form of alternative dispute resolution (ADR) in which the feuding parties participate—usually voluntarily— in guided negotiations with a trained, unbiased third party with the goal of reaching a mutually beneficial, or at least mutually acceptable, settlement. The results of mediation are generally concrete and enforceable by law.
There are a wealth of benefits to participating in mediation, as opposed to litigating your dispute. We’ve detailed seven of them below.
Litigation can become extremely pricey, and many disputes are simply not worth the cost of pursuing the issue in court. Mediation, on the other hand, is relatively inexpensive and will generally be worth your time and the money it will cost you.
2) Minimize contention and preserve relationships
By nature, litigation is very adversarial, which often leads to a significant amount of hostility that will carry over once the case is completed. In mediation, the two parties work together to find a solution to their issue that works for both parties, and each side has to consider the other’s position rather than simply fighting for what they want. This style of dispute resolution generally minimizes the level of contention between the two parties and allows you to preserve your relationship with the other party once mediation is completed. This is especially useful for business partners who have a dispute but want to continue working together.
Mediation tends to move much more quickly than litigation, for which hearings must be scheduled in a crowded court docket that could leave you waiting months or even years before you get your day in court. It also cuts down on the procedural red tape, allowing you to efficiently and judiciously settle your dispute and move on.
4) Control and flexibility
The parties in dispute actively participate in the mediation process, giving each side much more control over the process and allowing for much more flexibility in how settlements are reached.
Whereas litigation becomes public record, mediation will always remain confidential, allowing you to protect sensitive details about your company and the nature of your dispute.
6) Comprehensive and customized solutions
Litigation often limits the scope of your discussion and the resolutions you can achieve. In mediation, the scope will be comprehensive and you can address any aspect of your dispute you wish. Thus, your resolution will be customized, not geared towards a singular aspect of your grievance as it would be in a court decision.
Generally, mediation will result in a settlement that both parties can be satisfied with. The comprehensive nature of mediation settlements means they go beyond a simple compromise, but rather they will find creative solutions to fulfill all the needs of the feuding parties.
If you are interested in utilizing mediation to settle a business dispute, please contact the business and bankruptcy law office of Maxwell Dunn, P.L.C., and let us guide you to a beneficial and positive resolution.