When Can Mediation Help with Contract Disputes?

Contract disputes are not uncommon in the complicated business world. These disputes can arise from ambiguities, misunderstandings, or different expectations. When a contract dispute occurs, it can result in stalled negotiations and in some cases, mediation can be helpful when resolving these disagreements. Below, one of our Utah business law attorneys explains more about using mediation to resolve disputes.

What is Mediation?

Mediation is an informal, albeit structured, process in which a mediator, who is an objective third party, helps to facilitate a solution between the two conflicting parties. Mediation places an emphasis on mutual agreement, unlike litigation in which a judge will make all final decisions. The mediator does this by encouraging open communication and understanding, providing for an outcome that is more satisfactory to all involved parties.

What are the Benefits of Business Mediation?

Mediation has many benefits over litigation, which is one reason so many business owners choose it. These benefits are as follows:

• Confidentiality: Lawsuits, and anything that happens in open court because of them, are matters of public record. On the other hand, though, any terms discussed in mediation can remain confidential, which is often very helpful to business owners.
• Control: Perhaps one of the biggest benefits of mediation for business owners is that it gives them control over the process and the outcome of it. When an issue is settled in the courtroom, only the judge has control over the final decision.
• More affordable: The very nature of litigation is inherently expensive. Attorneys often charge higher legal fees, there are court costs involved, and the possible expense of discovery. The cost of mediation is generally much lower.

When is Mediation Necessary?

When a legal dispute arises, the parties involved may mutually agree to enter mediation to try and resolve it. If one party has filed a lawsuit against the other, a judge may order those involved to attempt mediation to resolve their dispute before beginning a trial. Many business contracts also require a mediation attempt before any party files a lawsuit against another.

Determining if Mediation Will Work

Even with all the benefits the process has to offer, mediation is not always the right choice. All parties must be willing to attempt to compromise and negotiate and enter the mediation process in good faith. On the other hand, mediation may not be effective if the other party is not acting in good faith, or there is a significant power imbalance that requires court intervention.

Our Business Law Attorneys in Utah Can Help You Through Mediation 

Mediation is very helpful when resolving business disputes, but it is still important to seek legal guidance from a Utah business law attorney. At AGS Law, our experienced attorney provides the supportive environment you need to effectively resolve your business disputes. We take a compassionate approach aimed at preserving relationships and avoiding the adversarial nature of a court case. Call us now at 801-477-6144 or contact us online to schedule a consultation with one of our experienced attorneys and to get the legal help you need.

Source:

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