A legal dispute can create significant disruption for your company, taking time and financial resources away from continued growth. Dispute resolution methods like mediation or arbitration can provide your business with an efficient resolution to a legal matter while offering confidentiality and control over the process. Contact Gueronniere, P.A., today for an initial case review to learn whether mediation or arbitration can help resolve your company’s legal matter.
Understanding Business Mediation
Mediation is a common approach to alternative dispute resolution for business conflicts, effectively serving as a more formal approach to settlement negotiation. Unlike traditional settlement negotiations, where parties discuss settlement directly, mediation discussions occur through a neutral third party called a mediator. Parties may pursue mediation when direct settlement discussions reach an impasse, as the mediator’s outside perspective can help them overcome obstacles to settlement.
When parties to a business dispute agree to mediation, they must agree upon a person to serve as mediator. In many cases, the mediator will have a professional background in or experience with mediating the parties’ specific type of dispute, such as a construction or labor dispute.
Before mediation sessions begin, parties may submit evidence, records, and written briefs to the mediator to provide the facts of the dispute and argue the party’s respective position. During the first mediation session, each party may present their case and arguments to the mediator to help them understand their perspective. During mediation sessions, the parties will sit in separate rooms or locations, with the mediator spending time individually with each party to discuss the strengths and weaknesses of their case and the opposing side’s case and potential solutions for a settlement. The mediator will go back and forth between the parties to convey settlement offers and help them reach a mutually acceptable agreement.
Some of the advantages of business mediation include:
- Cost-Effectiveness – Although parties must pay the mediator’s fees and other expenses, such as renting conference rooms for mediation sessions, mediation can cost significantly less than pursuing litigation to resolve a business dispute.
- Preservation of Business Relationships – Mediation helps parties reach a mutually acceptable resolution to a business dispute, which gives them a better chance of preserving their business relationship than the adversarial nature of litigation.
- Flexibility and Control – Parties retain flexibility and control in mediation, as either side can walk away from the negotiating table or continue participating in as many sessions as needed to settle a dispute. Settlements also give parties complete control over the outcome of their dispute.
- Confidentiality – Parties can keep their legal disputes confidential during mediation, which can help avoid complications such as loss of goodwill or jeopardizing other business relationships.
Understanding Business Arbitration
Arbitration is another alternative dispute resolution option for businesses. It involves a trial-like process to resolve a legal dispute, although arbitration has much more informal procedures than court. In an arbitration, parties in a business dispute will present their cases to one or more neutral third parties, called arbitrators, who will consider their evidence and arguments to issue an award resolving the dispute.
To submit their dispute to arbitration, parties must have a written agreement to arbitrate. An arbitration agreement can outline the rules and procedures for the parties’ arbitration and the process by which they will select their arbitrators. Depending on the rules agreed upon by the parties, the arbitration process may include limited discovery (the exchange of evidence, documents, and depositions). Parties may submit written briefs before the arbitration hearing.
At the hearing, parties can present evidence, witness testimony, and arguments in a format similar to a trial, although arbitration can use different rules and procedures. At the end of the arbitration hearing, the arbitrators will issue a decision resolving the dispute.
Some of the advantages of arbitration over litigation include:
- Binding Resolution – Most arbitrations result in a binding award, which can provide a final resolution to the parties’ dispute.
- Expertise – Parties can select arbitrators with extensive professional experience relevant to the dispute. Conversely, a judge or jury may have limited technical knowledge and require expert witness testimony.
- Confidentiality – Parties can agree to keep the results of their arbitration confidential.
- Efficiency – Arbitrations can resolve business disputes much quicker than traditional litigation due to the streamlined rules and procedures used in many arbitrations.
Legal Considerations When Pursuing Mediation or Arbitration
Before choosing mediation or arbitration to resolve a business dispute, companies should evaluate the legal considerations of pursuing alternative dispute resolution. These considerations can include:
- Enforceability of Dispute Resolution Agreements – Even when parties agree to mediate or arbitrate, one party may challenge the enforceability of that agreement. Many questions over arbitration arise in the context of “delegation” clauses, under which parties can agree to have an arbitrator rather than a court decide whether they have agreed to arbitrate a specific dispute.
- Framework for Arbitration – Arbitrations require parties to select rules/procedures. Organizations such as the American Arbitration Association and JAMS have standardized rules for legal disputes and maintain lists of qualified arbitrators.
- Limited Appellate Options – Parties dissatisfied with the outcome of mediation or arbitration have limited recourse, as courts typically enforce binding settlements reached in mediation. The law only allows parties to appeal binding arbitration decisions when an arbitrator exceeds the scope of their authority to arbitrate a dispute, consciously disregards material facts or evidence, or denies due process to a party.
How Our Mediation and Arbitration Attorney Can Guide Your Company Through Alternative Dispute Resolution
When you turn to Guerroniere, P.A., for help resolving a business dispute, you can expect our firm to offer more than simple legal representation. We take the time to understand your business’s needs and goals to develop tailored legal solutions and case strategies. Our firm ensures that you stay informed at each step of your case by offering the individualized attention and maximum effort your company deserves.
Contact Guerroniere, P.A., to Discuss Your Business’s Options for Resolving Legal Disputes
When your company finds itself in a legal dispute with employees, customers, contractors, or suppliers, alternative dispute resolution methods like mediation and arbitration can help you pursue an efficient resolution. Contact Guerroniere, P.A., today for a confidential consultation to discuss your case with our legal team and learn how mediation or arbitration can help your company obtain a favorable resolution to a legal dispute.