When a business dispute arises, one option that you have is to use litigation. With this process, you go to court and a judge will make a ruling. For instance, perhaps you and a business partner can’t agree on how someone should be allowed to exit the business, so the court has to provide guidance.
But another option is to meet with a third-party mediator. This person is neutral, not representing either side. Their goal is to take the emotion out of the situation and help both sides come together. Why could this be better for your company?
Focusing on the future
For one thing, mediation focuses on the future of the business. The two of you need to be able to make decisions and find compromises. Mediation works toward this outcome, rather than just having a judge make a ruling.
Saving time and money
Another benefit is that mediation can save a lot of time and money when compared to litigation. There isn’t the need for nearly as many court dates, which cuts down on the cost. Additionally, once both business partners are able to agree, things can move relatively quickly. If the goal is to get through this process and move forward, mediation makes that possible.
Continuing to work together
Ideally, two business partners who go through mediation over a conflict may still be able to work together. Maybe they just had a dispute about the direction the business should go, how to hire employees or how to divide revenue. If they had to litigate, that may be the end of the partnership. But if they go through mediation, they may be able to compromise and work together in the future, making the business stronger.
These are just a few reasons to consider mediation. Be sure you understand all the legal options at your disposal.