Business disputes happen daily in California and every other state, costing time, money, and lost productivity. Conflicts are inevitable in business, and they often lead to litigation. Alternative dispute resolutions (ADR), such as a mediator, can help avoid legal action and the damage that comes with it. The following mediator benefits make a solid case for mediation to resolve future business disputes.
Neutral ground
If you have a business dispute that goes to court, a judge could make generalizations regarding your situation, and a jury with laypeople might have difficulty remaining impartial. When you use a business mediator, you can retain more control over the outcome. The mediator is a trained, neutral party who facilitates both sides without introducing an opinion of their own.
When working with a mediator, each party can have an attorney present to guarantee they have knowledgeable representation. Alternatively, unlike a court proceeding, each party has the flexibility to represent themselves.
Confidentiality
If your Business Disputes go to court, they become public records. The entire process is confidential when you work with a mediator to resolve a dispute. This advantage can help protect sensitive information involved in the dispute, such as trade secrets.
Cost-effective
Choosing a mediator over litigation can reduce the costs of resolving the dispute by upwards of 70%. According to a national survey, 11% of the respondents said they saved more than $1 million in legal costs by using business mediation and other ADRs. The process also generally takes much less time than litigation.
More creative, collaborative solutions
Mediation is based on two parties working with each other to resolve an issue, whereas litigation involves one party against another. The amiable nature of mediation can preserve meaningful business relationships that might not have survived litigation.
After the mediator collects information from each side, the parties attend collaborative meetings to discuss concerns. During mediation, they are encouraged to use innovation and ingenuity to reach a mutual agreement.
Choosing mediation can save you time, money and unnecessary stress while offering faster, more amiable dispute resolution.