The business world is fast paced. While many deals and negotiations go smoothly, that’s not always the case. There may be times where business partners or businesses and clients disagree and a dispute arises.
There are several ways to settle business disputes. One option is to litigate through the courts. While this can be necessary, it’s not always the most effective option. Business disputes can also be mediated. Why might this be something to consider?
Relationships can continue
There are few opponents in business litigation that go on to do business together again afterwards. Usually, both parties go their separate ways after a stressful process. Mediation is different. The process is less formal, more private, and less pressured. A mediator will help to facilitate negotiations, but they won’t rule like a judge. It is up to disagreeing parties to find a middle ground and settle the dispute equitably.
More often than not, both parties can leave mediation being relatively happy with the outcome. This can provide a platform to continue working together, if that is what’s desired.
Speed and privacy
It’s no secret that the majority of courts currently have a backlog. This means that it can be several months before a business dispute is even heard. Settling the dispute can take even longer. All in all, business litigation can go on for several years, depending on the complexity of the legal issues. Mediation typically only takes a month or two. In relatively simple cases, the matter may even be resolved within a few weeks. This significantly cuts costs.
Another aspect of mediation is that sensitive information is only shared among the concerned parties and mediators. There is no need for anyone outside of the mediation room to know anything. Often, high profile business disputes can end up on social media or in the press. This doesn’t need to happen with mediation.
If you’re in the midst of a business dispute, it can help to explore your legal options. This can help you make the best decision for the future of your business.