The Benefits Of Mediation During Corporate Disputes
Conflict is often an unavoidable part of doing business. Successfully navigating business relationships can be difficult, often leading to minor disagreements or major disputes.
Being confronted with a corporate dispute does not necessarily mean going to court. A well-designed alternative dispute resolution may provide the tools needed to reach a favourable outcome.
What Is Mediation?
Mediation is a way to facilitate a conversation in which participants can work together to resolve their problems. The mediator, a neutral third party, helps lead the conversation without taking sides or forcing a decision.
Some of the key characteristics of mediation include:
- Voluntary Participation- At no point can any members of either party be forced to participate in the mediation or made to reach a conclusion.
- Informality- Unlike a courtroom, there are limited rules, with exception to the rules that the participating parties agree on.
- Negotiation Assistance- The mediator must be an impartial third party who participates objectively. They are tasked with providing options and helping the participants come to a fair, mutually agreeable solution
- Privacy- In the majority of cases, mediations can be kept confidential. This may be especially important for companies who are looking to protect their reputation or require discretion.
The Benefits Of Mediation
Depending on the business, the reason for mediation, and the participants, there are several reasons why taking this approach may be beneficial. When compared to litigation, mediation often permits for a less formal, more flexible experience. Meditation is typically far more cost-effective than going to court and affords a greater degree of privacy.
Another advantage to mediation is it encourages collaboration and creativity. Participants have more freedom to express ideas, propose solutions, and come to mutually agreeable solutions. A collaborative approach may also help preserve ongoing relationships to help ensure the ability to work together moving forward.
If Mediation Is Unsuccessful
While mediation is often recommended as a way to work towards dispute resolution, there are situations where litigation may become inevitable. An unsuccessful attempt to solve a problem through mediation does not prevent parties from going to court if they need to.
Whether a company is hoping to reach a rapid resolution, save money, protect their privacy, or promote cooperation, pursuing mediation may very well be a practical approach. Working with a team of professionals who are well-versed in mediation and other forms of alternative dispute resolution can be a good first step in finding a solution.