Business disputes can arise for many different reasons. In some cases, disputes begin with one company breaching a contract and causing setbacks for another organization. Other times, business disputes might involve executives clashing with shareholders or two business partners disagreeing about whether the sale of an organization is the right decision.
Those disputes can potentially lead to one party filing a lawsuit against the other. Involving the courts often seems like the only option when neither party initially wants to compromise. However, litigation can take many months to resolve and can also potentially lead to bad publicity for an organization.
The vast majority of business lawsuits actually end up settling before trial. Mediation can be a way to keep a legal dispute out of civil court and to settle a dispute as amicably as possible.
Mediation offers prompt conflict resolution
Factors including the complexity of the issue and the current volume of pending lawsuits determine how long it may take to resolve a conflict by taking the matter to trial. It might be months before there is a hearing in court.
Those hoping for a more expeditious resolution to a business conflict may want to consider alternate options, including mediation. Mediation can be a much quicker solution than waiting for a day in court. It may be possible to schedule a mediation session within a few days or weeks of a dispute arising or one party filing a lawsuit. The parties currently disagreeing on major issues could potentially find a reasonable compromise in as little as one day of mediation.
Mediation provides flexibility
Unlike a court order resolving a dispute, mediation requires the agreement of both parties. In a litigation scenario, the judge has the authority to make the final ruling. Both parties may feel disappointed with the outcome of a business lawsuit. For business mediation to be successful, both parties need to agree on specific terms and sign a binding agreement.
The party that initiated the lawsuit can then dismiss the pending lawsuit, allowing both parties to move forward without exploring the matter in a court setting. Mediation allows both parties to focus on the terms that matter most to them and can facilitate the preservation of a working relationship despite the significant conflict that may have complicated previous dealings.
Discussing the possibility of mediation as an alternative to a lawsuit or in response to a business lawsuit with a skilled legal team could lead to a reasonable solution. Business owners and executives who want to keep matters out of court may need to explore mediation as a way of resolving a conflict.