Conflicts and disputes are a routine and expected part of business. The variables are the time, effort and manner in which the business leader devotes to resolving these issues. Obviously,
Arizona Business Mediator
the primary goals in resolving the dispute is to put into it the least amount of time, effort and cost and preserve any beneficial relationships. The best method for accomplishing these goals is mediation. There are many advantages to mediation over engaging in litigation. Set forth below are several reasons why mediation should be the first choice for resolving business disputes:
- Quickly resolve pending issues: litigation can often take months or years. Many times the issues the parties face need to be addressed much faster. Mediation can be scheduled in a matter of days instead of months.
- Overwhelmingly successful: Over approximately 85% of all mediated disputes lead to a successful resolution of the conflict. Both parties are generally pleased with the result as opposed to litigation wherein there is generally a winner and a loser.
- Significant Savings over Litigation: Mediations can take place with each party represented by legal counsel or without. If lawyers are present, they generally present the issues and act to assist their clients in facilitating a resolution. If lawyers are not present, the mediator will act as a neutral to assist the parties. In either case, parties almost always spend significantly less in mediation than litigation.
- Manage your resolution and risk: The resolution of the dispute, if any, will be tailored by the parties. In a litigation or arbitration situation, there is generally a winner and a loser determined by a judge or arbitrator. Mediation reduces the risk of an all or nothing situation.
- Control the Mediation: The parties will jointly select the mediator and determine what issues the mediator will assist the parties in resolving. The parties will also select mutually agreeable times to meet with the mediator.
- Address the real problems: In mediation the parties are encouraged to address the causes of their dispute, including personalities, rather than focusing on each side’s legal theories. The result is often that a better, more honest and permanent resolution is reached.
- Informal atmosphere to present all issues: Often, judges, arbitrators and even lawyers are constrained by the time limitations imposed by the litigation or arbitration process. Rules of evidence and a limited understanding of complex or technical issues may stand in the way of properly presenting the issues for discussion. The more relaxed mediation environment assures all parties have their opportunity to fully present and explain the issues.
- Confidentiality and non-disclosure: Mediation is private and eliminates exposure of business mistakes, internal issues and helps protect trade secrets. This can protect a company’s orindividuals good will and reputation.
- Maintain beneficial relationships: A conflict does not necessarily mean the business relationship must end. Many disputes can be resolved amicably by engaging in Mediation. Engaging in consensus decision can allow the parties to continue their business relationship and eliminate the uncertainty or ambiguities that may be complicating an otherwise successful venture. Litigation can end otherwise profitable relationships prematurely. Many business leaders understand the importance of using mediation to build and keep good customer and employee relationships.
Mediation has many benefits for businesses over and above the ones briefly outlined above. It is a tool used by sophisticated business leaders and individuals to resolve issues and move forward while maintaining relationships for success in the future.
Jared C. Simmons is a mediator and attorney in Arizona. If you have questions about mediation or business law, Jared can be reached at: 480-998-1500 or jared(at)sglawaz.com. You can also visit: AZmediator.com. This is a general interest article only and is not intended to be legal advice. See a legal professional before making legal decisions.
