The Role of Mediation in Business Litigation

The Role of Mediation in Business Litigation

Business litigation is often time-consuming, stressful for both parties and more expensive than expected. Those involved often go through drawn-out legal battles and business relationships that are left permanently damaged. Knowing this, it’s not surprising that many business owners look into alternative dispute resolution methods. These options give business owners the option to maintain control over the process. If your Southern California business is headed for a high-stakes legal battle, it is crucial to work with an attorney who knows what you stand to lose—and how to protect it. Call a business lawyer at the Law Offices of Robin D. Perry & Associates at 562-216-2944 to find out how we can help you safeguard your business interests.

While mediation is the more widely known type of alternative dispute resolution method, it is not the only one. Arbitration is another way to resolve issues without going to court. Arbitration is an alternative dispute resolution method that puts the issue at hand in front of an impartial arbitrator. The final decision of the arbitrator is legally binding, which is one of the key factors separating it from mediation.

How Mediation Works in Business Litigation

Mediation is an effective option for a wide range of business disputes. It provides a constructive approach to settling disputes that arise between businesses, although it is also widely used in other areas of law. Traditional litigation puts parties through adversarial legal proceedings in which one side wins and one side loses. On the flip side, mediation encourages parties to work together to come to a mutually beneficial agreement. This may seem impossible, especially when the conflict is deep-rooted or there is a lot of money at stake. However, remember this: both parties stand to lose a lot when you consider the time and money spent on conventional litigation methods. The mediator, who has no allegiance to either side, guides negotiations.

The Benefits of Mediation

Mediation offers a number of benefits, including:

  • Cost-effective and time-efficient: Even when your legal team is handling your litigation needs, your mind and energy are still tangled up in your case. The more time your mind is stuck on your legal issues, the less time it can spend on your business. Mediation can help issues come to a close more quickly and give both parties their time back. Furthermore, mediation is often less expensive than other options.
  • More customized solutions and outcomes: When a case goes to court, there isn’t much room for creative, customized solutions that both parties can benefit from. Mediation allows involved parties to explore these options together.
  • Confidentiality: This is perhaps one of the most important benefits for business owners. When your business disputes are carried out publicly, your company’s name can get dragged through the mud by the media. The outcomes reached in mediation are kept confidential.
  • Preservation of business relationships: There are cases in which the parties want to preserve their relationship and continue working together in the future, particularly when they have a long-standing relationship or they provide such specialized services that there are few alternatives available. Mediation makes it easier to maintain a working relationship.

Overview of the Mediation Process

The parties begin by agreeing on a qualified mediator. It’s best to select a mediator that regularly handles the specific type of business dispute you are facing, as they may be able to anticipate the reactions and objections of both parties. Both sides prepare for mediation. When mediation starts, both parties give opening statements to each other and the mediator. Negotiations commence and the mediator looks for common ground to build upon as negotiations progress. If the parties come to an agreement, a settlement agreement is drawn up and signed. If mediation is unsuccessful, litigation continues.

When Mediation Isn’t a Viable Option

Mediation has its benefits, but it isn’t a one-size-fits-all solution. If one or both parties are not willing to compromise or negotiate in good faith, mediation may fail. Mediation may also not be the best option when one party is requesting immediate legal relief or when a dispute is so complex that there is no mediator with relevant experience available. Additionally, disputes involving more than two parties are often not suitable for mediation. Everyone has conflicting interests and common ground may be impossible to find.

Choose Business Attorneys at the Law Offices of Robin D. Perry & Associates for Your Business Needs

Don’t let a business dispute destroy the company you have spent your career building. Let us advocate for you and fight for a fair resolution. Reach out online or call us at 562-216-2944 to set up a time to meet.

About Top Legal Firm

Daniel Tan is chief editor of Top Legal Firm. Top Legal Firm is a free lawyers & law firm directory and legal blog that accept guest posts on wide range of topics. Contact Daniel Tan to publish your legal blog.

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