Business disputes can arise for a variety of different reasons. Some people end up embroiled in conflict with investors or business partners. Others have to deal with vendors or service providers breaching a contract.
Business litigation is often the go-to solution for those dealing with business disruptions and other issues caused by the conduct or non-performance of another party. However, it has become increasingly common for organizations to propose mediation as a means of settling disagreements with other companies, employees and even clients.
The three benefits explained below can illuminate why more businesses now consider mediation an option for the resolution of disputes instead of immediately turning to legal action.
Enhanced privacy
Any lawsuit could cause bad publicity for a company. If litigation relates to the organization’s treatment of employees or other forms of misconduct, even an unsuccessful lawsuit could do long-term damage to the organization’s reputation within the community. Generally speaking, anything disclosed in civil court becomes public record and is accessible to others. Mediation, on the other hand, is a confidential process. The information shared in mediation does not become public record and is not subject to disclosure after mediation ends.
Improved control
During litigation, the judge or jury hearing the case has all of the control. Plaintiffs and defendants rely on the judgment and perception of outside parties to resolve the conflict. Neither party involved in the dispute has control over the outcome. In mediation, both parties have to agree on specific terms. They must cooperate by voluntarily signing an agreement. Mediation allows a business to draw a line in the sand and walk away from the process if the other party proves inflexible. If the mediation fails, then the parties still have the option of moving on to litigation. The ability to influence or control the outcome can be very appealing in a business litigation scenario.
Faster issue resolution
Particularly in scenarios where business litigation disrupts company operations, settling the matter as soon as possible could be a top priority. The complexity of the case and the volume of other lawsuits demanding the intervention of a judge both influence the timeline for a traditional business lawsuit. Mediation scheduling is generally far more flexible. It takes less time to finish mediation, and scheduling a mediation session may require less patience than waiting for a date in court.
Considering business dispute mediation as an alternative to litigation could ultimately prove beneficial for parties embroiled in a dispute. Mediation can offer numerous benefits, including a minimized risk of escalating conflict when compared with traditional litigation.