Commercial disputes between businesses often end up settled outside of court rather than going to trial. Frequently, a settlement is possible because the parties facing the dispute work together during alternative dispute resolution before the matter goes to court.
Mediation has become a relatively common alternative dispute resolution choice, as people may have a less receptive attitude about arbitration. Mediation can help preserve a working relationship between two businesses by requiring that they work together and compromise.
Successful mediation can prevent a case from going to trial. It can also help protect businesses from the potential reputation damage caused by commercial litigation.
Mediation is a confidential process
Michigan has clear rules in place that make mediation a confidential process. When two businesses face a dispute regarding alleged intellectual property infringement, business torts or contract breaches, they can discuss matters at length without worrying about the details of the dispute becoming public record.
Regardless of what topics come up during mediation, records of the session are generally not admissible during court proceedings. Only the signed agreement established at the end of mediation becomes part of the public record.
Business litigation may attract the attention of the local news media or members of the public if the case goes to trial. The release of non-public information during civil litigation could damage a company’s reputation or competitive advantages.
Proposing mediation while waiting for a court date can be a smart solution for business leaders. They can potentially resolve a conflict while limiting what details become public. At the end of the day, alternative dispute resolution options, including mediation, can help business leaders settle disputes privately.