Conflict can be an inevitable part of doing business. However, disputes do not always have to end in litigation. Instead, companies can find effective solutions through mediation. Mediators are neutral parties who help the disputing businesses find a joint resolution.
In California, about 95% of all lawsuits settle out of court. Taking your dispute to court can cost your company more money and time than alternative resolutions.
What happens during mediation?
To take part in California’s mediation program, contact all parties and agree to find a resolution through mediation. All parties must submit a Request for Mediation form to the Court of Appeal. Once the parties have a date for mediation set, they all meet in a conference room. Mediators will explain the process and rules and ensure all parties understand what to expect.
Next, both parties can tell their side of the story and highlight concerns while emphasizing their desired outcomes. Once the mediator hears both sides, he or she will identify the core issues and discuss potential solutions. When the parties reach an agreement, they put it in writing and create a binding contract.
What are the benefits of business mediation?
Your relationships with other companies can make or break your future. Mediation helps preserve relationships compared to courtroom battles that strain business relationships. Likewise, you have more control over the outcome. You and the other party take an active role in finding a solution rather than feeling forced into a resolution by a judge.
Business executives should have strategies to avoid business disputes. But, if a dispute becomes inevitable, the company should resolve it in the most efficient way possible. Mediation is among the most effective resolution methods.
