The Legal Meditation in Business Disputes: Why Is It Important?
Businesses can find themselves wasting precious time and money trying to resolve disputes. But it does not have to be this way. Read on to find out how legal mediation can be used to find an agreement that lets everyone move forward.
What is legal mediation?
Legal mediation allows organisations to work through disputes in the presence of an unbiased, third-party. This third-party carves open a space for flexible and productive disputation and maintains every party’s focus on the end goal: negotiation and agreement. Legal mediation can take place both before and during legal action, so it is never too late to take up this option. It is usual practice in mediation that, before bringing the various parties together, they will be individually asked to provide a written summary to the mediator. This allows the mediator to make plans for a productive meeting.
What are the most common, and the most challenging, types of legal mediation?
Legal mediation can be used for all manner of civil disputes, but it is most utilised in Finance and Real Estate disagreements. The most challenging mediation tend to be those that assist divorced couples seeking a fair financial settlement. It is acknowledged that legal mediation is more likely to produce an amicable agreement, which is usually at the forefront of the minds of two people who are separating.
Tenant and landlord disputes are amongst the most common types of legal mediation as both parties prefer quick and cost-effective solutions for their own security. Estate agents are not able to provide a wholly impartial mediation as they are working in the interests of the landlord, so the importance of the mediator’s independence in these instances is very high.
What are the benefits of mediation for businesses?
While the specific benefits for mediation are case-dependent, there are some general benefits that apply to each situation. As mentioned, legal mediation is more likely to preserve business and personal relationships, while also maintaining confidentiality about the dispute in question. Furthermore, legal mediation is a more economical approach, both in terms of time and money. The alternative, litigation, can be an expensive, drawn-out process that is wholly inflexible to the particularities of a case. It is worth bearing in mind that, just like litigation, mediation concludes in a legally binding outcome.
Overall, it is easy to see why legal mediation is deemed so important in business disputes. Where the litigation process can be lost in a blame game, mediation empowers all parties to really consider their priorities, and move forward at peace with the situation.