Benefits of Using Mediation to Resolve Your Business Dispute

Disputes that arise within a business can be very damaging to the company. Whether they involve employers, employees, partners, shareholders, suppliers, or other parties, a single dispute can stop business operations, damage a company’s reputation, and more. To prevent these negative impacts, it is important to resolve business disputes as quickly as possible.

There is, though, more than one way to resolve a business dispute. Often, business owners find that mediation has many benefits over traditional litigation. During mediation, the opposing parties meet with a neutral third party mediator who helps the two sides reach an agreement. This is often preferable over going to court and allowing a judge to make the final decision. Below, one of our Utah business law attorneys outlines the biggest benefits of mediation.

Quicker Resolution

One of the biggest benefits of mediation is the speed at which disputes are resolved. When an issue is taken to court, it can take months to one year or more to resolve. During this time, business operations may have to pause and ongoing damage can occur to the company’s reputation. Mediation, on the other hand, can take just a matter of weeks with disputes being resolved in just a few sessions. This allows business owners to resolve the disagreement quickly and get back to focusing on running their business.

Cost-Effectiveness 

Litigation is notoriously expensive as it incurs court fees, attorney fees, and other expenses associated with litigation. For example, a dispute regarding a business’ intellectual property can cost up to $300,000 or more in Utah when it is taken to court. When using mediation, though, similar issues can be resolved for a fraction of the cost.

Maintain Relationships

Preserving professional relationships is another large benefit of mediation. During litigation, opposing sides are often placed against each other. Litigation is combative in nature and the process can destroy established relationships. Mediation, however, promotes mutual understanding and open dialogue. This is particularly beneficial when business owners are trying to preserve relationships with clients, suppliers, and even employees.

Better Control

When a dispute is resolved through litigation, a judge makes all of the decisions, often according to the statutes, case law, or their own discretion. In mediation, the opposing parties have all of the control. The mediator does not make any decisions and only tries to foster an agreement. The opposing sides can reach a customized agreement that is more suitable for their situation.

Maintain Confidentiality 

Anything that happens in court typically becomes part of public record. This can make it easy for others to access a company’s sensitive information such as trade secrets, customer lists, and other information that gives businesses the competitive edge. Anything that happens during mediation is confidential, which also makes it a more attractive option for business owners.

Our Business Law Attorneys in Utah Can Help You Through the Process

The above are just a few of the benefits associated with mediation. At AGS Law, our Utah business law attorneys can guide you through the process, negotiate on your behalf, and give you the best chance of resolving the issue in a manner favorable to you. Call us now at 801-477-6144 or chat with us online to schedule a consultation and to get the legal advice you need.

Source:

utcourts.gov/en/about/miscellaneous/mediation.html