Commercial mediation is an effective alternative form of dispute resolution. During commercial mediation, a neutral third party assists individuals and businesses involved in a dispute and helps them reach an amicable resolution of this dispute. The process is much less formal than court proceedings and offers a number of key advantages to party participants.
What Types of Cases Can Be Resolved through Commercial Mediation?
Nearly any type of commercial case can successfully be resolved through commercial mediation so long as the parties consent to the process and participate in good faith. Some types of cases that particularly lend themselves to commercial mediation include:
- Breach of contract claims
- Business disputes
- Partnership disputes
- Shareholder disputes
- Commercial mortgage foreclosures
- Real property disputes
- First-party insurance claims
- Eminent domain issues
- Business torts
Parties involved in commercial mediation may include a variety of professionals and businesspeople, including:
- Individuals
- Business owners
- Contractors
- Real estate owners
- Financial corporations
- Insurance companies
- Governmental agencies
The goal of most people involved in a commercial dispute is to achieve the best solution possible under the circumstances. Mediation provides an opportunity for the parties to resolve their dispute quickly and efficiently.
Benefits of Commercial Mediation
Commercial mediation is a voluntary process that is used as an alternative to litigation. Some of the major advantages of commercial mediation include:
- Confidential – Parties who agree to mediation enter into a confidential process in which they are able to freely communicate since what they say during mediation cannot later be repeated. This aspect helps the parties ensure that the public is not made aware of proprietary information or information that may damage the reputation of a business involved in the dispute.
- Flexible – In mediation, the parties are free to reach any agreement that they both agree to. They are not limited to what a court might order, such as monetary damages. This often allows for creative solutions, such as restructuring a business deal, including additional terms in a contract, modifying a contract, partnering up on future assignments or agreeing to a licensing deal.
- Control – The parties retain control of the decision of whether they settle their dispute and on what terms. In litigation, the parties hand over this control to the judge and jury. Mediators do not impose decisions on the parties; they are able to make their own decisions.
- Affordability – Mediation can also save a significant amount of money. The parties can halt any further litigation, saving on attorney’s fees and any potential judgment.
- Speed – Mediation can resolve a dispute in a fraction of the time as litigation.
Process of Mediation
During mediation, the parties begin by the mediator explaining the process and goals of mediation. The parties are then usually divided into separate rooms. The mediator meets with each party separately. During these private meetings, the mediator learns about the party’s position and interests. The mediator delivers information back and forth between the parties and encourages them to work together and explore options to resolve the dispute. If the parties reach an agreement, the terms are drawn up in a written memorial.
To take advantage of the full benefits of mediation and to learn how it can help your case, contact us today.