When to Pursue Mediation to Resolve Business Disputes

1
When to Pursue Mediation to Resolve Business
Disputes
2
Table of contents

• When to Pursue Mediation to Resolve Business
  Disputes
• How Does Business Mediation Work?
• When to Consider Business Mediation

3
When to Pursue Mediation to Resolve Business
Disputes

• Legal disputes are often costly, time-consuming,
  and not good for business. Even if it is mild and
  seems easy to work through, it can still drag
  down a lot of processes and ultimately impact
  your business bottom line. If severe, a legal
  dispute can cause a lot of damages to your
  business. Unfortunately, legal disputes are part
  of doing business. And thats why every business
  owner needs to know how to effectively manage any
  dispute that arises.

4

• Mediation is a potent process that is often used
  by many business owners to break down an impasse
  and move business disputes to resolution. But
  like any other strategy, there are right and
  wrong times to use it. So, when does business
  mediation makes more sense? Well find out
  shortly but before then, lets learn a few
  basics

5
How Does Business Mediation Work?

• In a mediation process, a third party is
  appointed by both parties to facilitate an
  agreement on how the case can be resolved. The
  decisions are left for the parties in dispute
  with the assistance of a mediator, so the control
  of the terms of engagement or agreement is fully
  left to both parties. The mediator doesnt make
  the final decision nor gives any legal advice.
  This is different from litigation processes where
  the judge makes the final decision that is
  binding to the parties regardless of whether one
  party is unhappy with the outcome.

6
When to Consider Business Mediation

• 1. When you are looking for quick and inexpensive
  dispute resolution
• Litigating any business dispute is extremely
  expensive. The pleadings, discovery, motion
  practice, and billing rates of the counsel all
  translate to a lot of costs for the parties in
  dispute. On the other hand, mediation offers a
  faster and less resolution to a dispute.

7

• When both parties agree to resolve a dispute
  through mediation, a mediator can be chosen
  fastin a matter of days or weeks. And the only
  requirement for the process may be the
  preparation and exchange of pre-mediation briefs,
  especially if the case is complex. For starters,
  pre-mediation documents set out the facts and
  other important information about the dispute.

8

• Sometimes, a pre-mediation brief may set out each
  partys legal positions. While some mediators may
  have other requirements beyond the exchange of
  pre-mediation documents, the process is usually
  done quickly and inexpensively.

9

• 2. When the litigation cost is higher than the
  monetary value of the dispute
• Some disputes are related to issues or processes
  that are important to both parties but dont
  carry great monetary value. If it is critical for
  the parties in dispute to resolve such cases, the
  only resolution method that makes more economic
  sense is mediation. Besides, mediation can also
  allow both parties to determine the best outcome
  that fully addresses their concerns.

10

• 3. The need to preserve a beneficial business
  relationship
• When you have a strong business relationship with
  your client and you want to continue the
  relationship, mediation may make more practical
  than litigation in resolving a dispute and
  resolving your business relationship going
  forward.

11

• 4. When the liability is clear but the disputing
  parties cannot agree on damages
• This is another perfect situation for business
  mediation. A good mediator can work with the
  parties in dispute to come up with an acceptable
  resolution that is favorable to both
  partiesfaster and less expensive than
  litigation.

12

• 5. When publicizing the dispute may have
  detrimental effects on the business
• Even when the impact of a dispute is bearable,
  the precedential effects of any decision that
  becomes a public matter can be far-reaching. In
  the age of electronic court filings, for
  instance, litigations may

13

• Cause significant reputational damage and attract
  public scrutiny.
• Drive your customers and other business partners
  to your competitors and ultimately impact your
  future revenue, market share, and other business
  opportunities.
• Encourage more regulatory scrutiny.

14

• Make it more expensive to get your business
  processes done because your customers and
  business partners may be more careful and
  thorough when reviewing your contracts. Some
  partners may even hire lawyers to help them
  analyze the potential consequences of doing
  business with you.

15
The Bottom line

• As you can see, there are many instances when
  business mediation makes more sense than
  litigation. However, like any other dispute
  resolution process, mediation has a few
  shortcomings and not every dispute can be
  resolved through mediation. In fact, if you are
  forced to mediate in business disputes that are
  not mediation-friendly, you may end up wasting a
  lot of your precious time, money, and even give
  up valuable leverage.

16

• Nonetheless, if you decide to go the mediation
  route, remember to consult with a good business
  mediation lawyer to help you analyze your
  situation and establish whether it is right for
  your case and to what extent the mandatory
  mediation clauses may suit your business.

17
Contact details

• Lowe Yeager Brown PLLC

Address 900 S Gay Street2102 Riverview
TowerKnoxville, TN 37902 Phone [phone]
Address 1629 K Street NWSuite 300Washington,
DC 20006 Phone [phone]
Website https//www.lyblaw.net/