Business people involved in a dispute usually consider filing a corporate lawsuit in order to resolve the dispute. Taking their case to court for litigation usually occurs when efforts that involve informal dispute resolution fail. Courts of law are indeed the places to settle differences in opinions that characterize a business dispute.

However, nowadays, most businesspersons tend to shy away from litigation as dealing with it usually takes a lot of time and money.

Some cons in litigating a business dispute

One of the main disadvantages in having a business dispute go under the court system is that the parties involve lose control over the outcome or judgment. In court, a jury or judge will make the decisions concerning the matters at hand. The decision would always tend to point out a winner and a loser.

However, in reality, both the winner and the loser after the litigation, tend to both lose significantly in terms of expenses, time and focus to the management of the business.

Judgment on lawsuits are usually unpredictable and a party may become so engrossed in winning out their position that they do not think of the possibility that they may lost the case.

The whole process of litigation usually becomes very galvanizing. The tension created between the parties during the process make it difficult for them to patch up their differences and continue with their partnership. Thus, this could have detrimental impact on their financial status.

With these adverse effects, it is not surprising that most businesses undergoing a dispute tend to consider alternative ways to resolve it, which is relatively time efficient, cost effective and may encourage the nurturing of the partnership of the parties.

One of these alternative ways is mediation. Mediation can be accomplished at any given time and anywhere favorable for the parties involved. It can also be done with a hired dispute attorney present, or even without such presence. However, it would always be more productive to have such an attorney monitor the settlements.

What is Mediation?

It is a relatively informal process wherein the parties of a business dispute would meet together with a neutral third party and air out their differences in opinion. Airing out their differences will not be addressed to the third party but to one another.

Mediation Process

Usually, mediation occurs in a meeting room or area. There are ground rules that the mediator will set for the parties to follow throughout their discussion. The parties can have uninterrupted time as they speak out their positions.

Then, the mediator separates the parties into different rooms. This process is known as the “caucus.”

After the caucus, wherein the positions are already learned along with each point’s strengths and weaknesses, the mediator communicates with the involved parties separately. The purpose for this is to come up with a resolution for the conflict.

Ninety percent of the time, business disputes are resolved through the process of mediation, successfully. Thus before setting your sights on filing a lawsuit to resolve a business dispute, try going under mediation first and see if the conflict with your partner can be resolved without having to go in the courthouse.

By: Lala C. Ballatan

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