When you have a dispute with another business, you don’t want to jump to litigation right away if you can avoid it. Mediation can often be easier, faster, less expensive and provide better outcomes than a trial.
But, how do you know if mediation is right for your situation? Here are some key indicators:
You want to maintain a working relationship
One of the best reasons to explore mediation in a dispute is the chance to preserve your relationship with the other party. Unless one party is out for revenge, mediation offers the best chance of getting everybody back on the same page. Litigation, by contrast, is inherently adversarial, which can lead to hard feelings and end the possibility that you’ll ever trust each other enough to work together again.
You both want more control over the outcome
When two companies head to litigation, one side has to win and the other has to lose. When companies are willing to consider their mutual interests and needs, that can make it easier to find a solution that both sides can accept.
The American Bar Association says that between 70% and 80% of commercial disputes that go to mediation are settled. Since the outcomes are negotiated and usually reasonably agreeable to both sides, they also tend to comply with any agreements that are made.
You want to limit the disruption to your operations
Litigation is a lot more costly in terms of time, money and business interruptions. Mediation can work around your schedule.
Whatever your situation, mediation is worth exploring. Legal guidance can help you clarify your goals, frame your arguments and find ways to negotiate for what you need.