When to Consider Business Mediation
Legal disputes within a business can interrupt operations, drain resources, and create conflict among partners and shareholders. Although many people assume that these disputes must be resolved through litigation, that is not always true. Mediation is often effective at resolving these issues without the need for expensive and time-consuming litigation. Below, one of our Utah business law attorneys explains when mediation might be right for your dispute.
What is Mediation?
Mediation for business disputes is a voluntary process where opposing sides work together to resolve their disputes with the help of a neutral third party mediator. Unlike court hearings, mediation allows businesses to retain control over the outcome, compromising on a solution amicable for both sides. Also, unlike court proceedings, mediation is also entirely confidential. Mediation is particularly useful for resolving issues such as partnership disagreements, contract disputes, and disagreements with suppliers or clients.
When choosing mediation, companies can save money and time while also protecting business relationships. The mediator does not make decisions but instead, guides conversations to help each side understand the other’s perspective and work towards a satisfactory solution.
When is Business Mediation Most Effective?
Business mediation is most effective in the following scenarios:
- Relationship preservation: There are many times when preserving a business relationship is more important than “winning” a dispute. This is particularly true when a continued relationship will benefit both parties.
- Protect business operations: There are times when litigating a dispute is simply not worth the time and expense of going to court, as this can greatly interfere with business operations. In these instances, business mediation is often a better option.
- Confidentiality is important: During a litigated dispute, confidential details about a business may be revealed and they could become a matter of public record. Everything said and agreed upon during mediation remains confidential, which can help owners who want to protect their business’ information.
- Complex disputes: Complex disputes often require creative and customized solutions. In these cases, mediation can provide a “win-win” solution for both parties that a court could not provide.
When Does Business Mediation Not Work?
As beneficial as business mediation is in many cases, there are also times when it is not as effective. These include when:
- One side is using mediation solely to gain information or is otherwise acting in bad faith.
- A legal precedent is needed to address a serious power imbalance.
- The dispute is contingent on an important interpretation of the law rather than a negotiation.
Our Business Law Attorneys in Utah Can Help Resolve Your Dispute
Mediation has many benefits, but it is not always the right option. At AGS Law, our Utah business law attorneys can determine whether it is the right solution for you, guide you through the process, and negotiate on your behalf to help you obtain the best possible outcome. Call us today at 801-477-6144 or fill out our online form to request a consultation with one of our experienced attorneys and to learn more about how we can help with your case.
Source:
utcourts.gov/en/about/miscellaneous/mediation.html