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Eight Reasons Companies Need To Consider Mediation For Resolving Disputes

For legal disputes between companies, mediation remains one of the best ways to bring about a peaceful resolution to a problem. What is mediation? It happens when two parties (let’s use two businesses in this case) meet with a mediator to resolve a dispute. Essentially, the mediator acts as a middle man, listening to both sides of the dispute, fostering discussion between two parties and ultimately helping to resolve problems.

If your company has an issue with another company, mediation can bring about a resolution that leaves both parties satisfied. In some cases, stand-by mediation is used, with mediators used on an on-call basis during litigation or arbitration proceedings.

Benefits of mediation and stand-by mediation include:

  • Less stress: Depending on what kind of dispute you have with another company, you may not want to air any dirty laundry in a court room. Thankfully, a mediator can take away a lot of the stress and anxiety that come with court appearances and both parties may be more comfortable and willing to work out issues with a mediator.
  • Privacy: It doesn’t matter if you’re talking about divorce, civil rights, bankruptcy, litigation, arbitration or something else, people like their privacy. Rather than hurling insults or falsehoods about a company you have a dispute with in front of a court, representatives from both companies can meet with a mediator or have stand-by mediation as an option and discuss important business matters privately.
  • Confidentiality: One of the best things about mediation and stand-by mediation is that once both sides have reached a resolution, representatives can agree to keep discussions and outcomes private, unlike in court where everything can be made public.
  • Control: When it comes to arbitration, litigation and other debates and discussions, companies are ultimately looking for a resolution to their dispute, while also having their say during the proceedings. Stand-by mediation and regular mediation provides just that, allowing companies to have their say and (hopefully) work together toward an agreement that works for all parties concerned. Even if a decision favors one company over the other to some degree, a mediator can be a valuable part of bringing an end to whatever conflicts there are.
  • Money: If a company believes without a shadow of a doubt that it has been wronged, then it can spend time and money tying up a lawsuit in court in hopes of getting a win. On the other hand, mediation often brings more peaceful resolution to disagreements and costs considerably less than going to trial.
  • Convenience: One of the other strongest benefits of picking mediation to sort out disputes is that both parties can agree to a time and place for talks.
  • Peace of mind: As previously stated, even with a mediator a dispute may not always work out in favor of your company. Win or lose, the good news is that most companies can better accept the decision of a mediator.
  • Input: Another great benefit of working with a mediator is that both companies can have input toward the final decision. In this way, you’ll be able to come away with an agreement that works for both parties and has terms that the companies may not get had the dispute taken place in a public court.

Whether you’re trying to settle a federal dispute or a civil case, mediation can help bring about a faster resolution to that dispute. It’s estimated just about 1% of civil cases typically reach federal court, so if in the event you do have a federal dispute, mediation can bring about a quicker ending and a more agreeable ending with less hostility and more privacy.

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