Conflict is a part of business. No business owner or CEO expects to glide through business transactions with no problems. Often, these issues can be handled through discussion and compromise. There are times, however, that litigation seems like the only recourse. How can mediation help in these situations?
What is Mediation?
Mediation is a way to resolve misunderstandings outside of a courtroom. The structure is usually more relaxed and is directed by a neutral third party. The mediator speaks to both sides separately and then guides the parties to a resolution. Mediation is used to resolve business disputes before they head to litigation.
When to Use Mediation
If there is a desire to keep a working relationship after the dispute is settled, mediation may be the avenue to take. Since the process is more informal, both sides can raise the issues that led to the disagreement and find solutions that work for both sides. Mediation is also much more cost effective than litigation and can lead to resolution much quicker than a court case. The mediation process is private, meaning that the situation can remain out of the public eye. This is very attractive if the businesses wish to work together in the future. Since the setting for mediation is informal, the meeting can take place in a neutral boardroom, or even through an online format.
The Negative Side of Mediation
Mediation is not the answer for every dispute. There are circumstances that can make mediation impossible. For instance, if one of the parties refuses to enter into mediation, or if the situation involves complex company procedures, mediation may not be feasible.
If your business is at odds with another party, mediation may be a solution that will work in your situation. If you have questions regarding business disputes, contact Burnside Law Firm to schedule a consultation. Our team can help you decide the best route to take for your business.
Posted on behalf of