| Despite the best intentions of the parties business | | | | litigator I know the effort, work and stress |
| relationships sometimes sour. Both sides may | | | | involved in zealously representing clients in a |
| view their respective position as reasonable and | | | | lawsuit. Be that as it may, the fact that attorneys |
| their business practices as ethical. However, it is | | | | are justified in their fees doesn't make it any |
| well known within the law that reasonable minds | | | | easier for the small businessperson to pay them. |
| can differ. When positions grow roots and refuse | | | | Consequently, businesspeople involved in a dispute |
| to bend business disputes can and do occur. | | | | are faced with a conundrum: How to economically |
| Depending on what is at stake the business | | | | and efficiently resolve the conflict. Fortunately, |
| people involved in the dispute may think about | | | | there is a cost effective, time efficient alternative |
| filing a lawsuit especially when informal efforts to | | | | to litigation. It's called mediation and it can be done |
| resolve the dispute fail. To be sure, courts of law | | | | anytime with or without hiring lawyers. |
| are places to resolve disputes. But they are not | | | | Mediation is an informal process where the parties |
| particularly efficient or cost effective at least not | | | | to the dispute come together with a third party |
| from the perspective of the person trying to run | | | | neutral person to air their differences. Not to the |
| a business. | | | | mediator, to each other. Typically this takes place |
| A chief disadvantage to using the court system is | | | | in a conference room where the mediator sets |
| the parties lose all control in the outcome. Basically | | | | out the ground rules. Both parties are given |
| a judge or jury is asked to make the decision. | | | | uninterrupted time to have their say. The |
| The nature of the courthouse is it makes a | | | | mediator then will usually separate the parties in |
| "winner" and a "loser". The fact of the matter is | | | | different rooms in what is known as the "caucus". |
| every "loser" loses and many "winners" likewise | | | | After learning the positions of the parties, with |
| lose because of expense, time and attention | | | | their respective strengths and weaknesses, the |
| away from the business. | | | | mediator will communicate with the parties |
| Further, a party may be so entrenched in their | | | | separately in an effort to try and hammer out a |
| position that they give no thought to the | | | | resolution to the conflict. And here's the good |
| possibility of losing when lo an behold they are | | | | news: mediations are successful at resolving |
| unpleasantly surprised. The fact of the matter is | | | | business disputes up to 90% of the time. |
| the outcome of a lawsuit is unpredictable. No one | | | | It should be understood that mediators don't |
| can really call it. In fact, that's why many lawsuits | | | | independently make the decision as to how the |
| are settled: risk. | | | | conflict should be resolved. Rather the mediator |
| Additionally, the litigation process is very | | | | facilitates communication between the parties and |
| galvanizing. Once the process has begun it is highly | | | | gives them the tools to craft there own |
| unlikely that parties reconcile their differences and | | | | agreements. |
| continue to do business together. This fact may | | | | Another key advantage is mediation is relatively |
| have an additional detrimental economic impact on | | | | speaking much less expensive than litigation. |
| one or both parties. | | | | Although mediation fees vary, a typical full day |
| We have not even touched on what legal fees | | | | mediation can run between $750 to $1250 per |
| can be to litigate a case. As I am sure is no | | | | party. |
| surprise, they can be quite high. Don't get me | | | | If you are a faced with a business dispute that |
| wrong; I don't begrudge attorneys their fees. | | | | you just can't seem to resolve by yourself, talk |
| Before I was lawyer I too would complain about | | | | to your attorney and consider mediating the |
| the cost of legal services. However, as a former | | | | conflict before pulling the trigger on a lawsuit. |