Disputes are part and parcel of doing business. No matter how well a contract is drawn up, things can go […]
Disputes are part and parcel of doing business. No matter how well a contract is drawn up, things can go awry, partnerships can turn, and the commercial ties that bind can come undone. The first reaction is usually to put in a call to a solicitor. Yet there is an alternative to the courtroom that is more sensible, quicker, and easier on the bottom line, commercial mediation.
The Mediator’s Part
Think of a commercial mediator as a neutral party with the training to see a dispute through to its end. They are not there to pass judgment or make an arbitration award; they will not hand down a ruling. Their job is to put in place a confidential setting where the parties involved can have an open discussion and find common ground.
These professionals know the ins and outs of how business works, the pressures, the contracts, the dynamics. They have a way of moving past hard lines to get at what is really being argued over and then shepherding the parties to a result that makes sense for everyone.
Where You Might Need One
Mediation has a wide application. It is used for:
- Contract issues, be it a breach or a question of performance.
- Tensions between shareholders or partners on matters of strategy or money.
- When a supplier or client relationship has hit a wall, or an invoice is in question.
- Franchise matters involving rights and duties.
- IP ownership or licensing.
- Delays or defects in a construction or property project.
- IT and technology disputes over software or systems.
Put simply, if there is a contract or a relationship in the mix, a mediator can be of use.
Making the Case for Mediation
There is a good reason to opt for this over a trial. Time is of the essence. While you can be in court for months or even years. experienced Effective Dispute Solutions commercial mediators can end your dispute and complete you mediation in one day, or even a few hours.
It is less of a drain on resources. Between legal fees and the time your management team has to give up, litigation is costly. Mediation is not.
What happens in the room stays in the room. Unlike a public court case, mediation is private and confidential. Sensitive data and your company’s name are kept out of the record.
You have a say in the result. A judge will make a winner and a loser. Here, the parties craft the solution, which means it is one they are more apt to live with. And for those who must do business with each other in the future, it avoids the kind of damage control that follows a lawsuit.
How It Works?
Generally, it starts with position statements from both sides. The mediator will hold a joint session and then some one-on-one time with each. With a bit of probing and problem-solving, the goal is to close the distance between the two and put an agreement in place.
Is This the Right Path?
When a dispute comes up, no matter how thorny, it is worth looking into. Judges are more and more likely to want to see that you have made an effort to mediate before they open a file, and there are cost implications for not doing so.
A word with a seasoned mediator is without charge and may well be the best thing for the business. In the end, the only real question is whether it is more affordable to forgo it.
