Commercial Mediation
Conflicts and disputes are part of every-day business life. A
conflict may pose both risk and opportunity. It is our response to
conflict that gives rise to that opportunity...an opportunity for
constructive change. Typical business disputes are good candidates
for resolution by Alternative Dispute Resolution and especially
mediation. Some advantages of mediation over traditional litigation
include the following:
-
Control the outcome: The parties make the decision. The
settlement, if any, will be decided by the parties, not imposed by
a judge or arbitrator. This greatly reduces the fear that is
likely to be present when the dispute is large enough to threaten
the solvency of the business or its owners. It also for
commercially reasonable settlements outside of what might be
imposed by a judge or an arbitrator
-
Control the process: The parties will select the mediator
and decide which issues will be addressed, when sessions will be
scheduled and how fees will be apportioned. In short, the parties design
the process, and it can be well defined and predictable.
-
Save costs: In mediation, lawyers act in a
consultative or coaching role, with clients or executives
normally participating directly in the mediation. In contrast,
business disputes in court can result in the client assuming less
of the
important decision-making role.
-
Deal with the real issues: Parties can discuss the true
problems and issues in dispute, including personalities, rather
than arguing about each side's legal points. The result often
is that a better, more honest and effective solution is reached, which leaves
participants feeling better, not worse.
-
Discuss technical issues: Issues which may be too complex
or technical for a judge to grasp in the rushed atmosphere of a
courtroom can be handled in mediation.
-
Speed: Mediation can be scheduled and likely concluded as
quickly as the parties need.
-
Confidentiality: Control unwanted publicity. Mediation
avoids public exposure of business mistakes, internal problems and
trade secrets. This is a significant benefit. Due to possibly sensitive issues, a local or national company
may have an important
interest in preserving its reputation and goodwill. Sometimes the
negative costs of going public with a dispute can be huge.
-
Preserve relationships: Mediation can allow the
relationship between disputing businesses to continue beyond the dispute.
The very process of arriving at a consensus decision can be the
foundation for the parties to continue to do business together.
Going to court may destroy that potential. Many businesses also
realize the value of using mediation as part of an overall
strategy to build and keep good customer relationships. The same
is true for disputes with employees.
-
Plan for the future: Parties can devise a plan for a future
working relationship rather than limit discussion only to the
dispute at hand.
-
Satisfaction with the process: Mediation has an 80%+
settlement rate and participants are generally much more satisfied
with the process especially compared to other forms of dispute
resolution.
This
is only been a brief overview. Mediation has significant benefits
for the business community. Creative ways of resolving conflict by
owners and managers can add to the bottom line of any business
whether large or small.
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