We have discussed the advantages of business dispute mediation many times in our blog. In the right circumstances, mediating disagreements (rather than filing a lawsuit) can save time and money while protecting a business’s privacy.
Those who agree to mediate a business dispute should make every effort to promote a successful outcome. Otherwise, they may be forced to resort to business litigation to resolve the disagreement.
Knowing what to expect during mediation can prepare you for success.
What does the mediator do?
They listen. As an unbiased third party, they remain uninvested in the outcome of mediation. That means they can look at the facts presented by each party objectively to determine a fair resolution. Mediators may also conduct private discussions (caucuses) with each party individually to explore the dispute in-depth.
What is your role?
You and the other party to the disagreement are there to present facts and arguments regarding the matter to the mediator. Typically, that means discussing the dispute and presenting evidence that supports your take on the issue. Opening yourself up to compromise is also an ideal way to prepare for mediation. Hopefully, the other party is also agreeable to compromise.
Do you need legal representation?
Yes. Much is at stake in any business dispute. Without legal guidance, you leave your company open to financial and reputational risks. A poor outcome may even leave you with no choice but to cease your business operation. For example, if the other side is victorious, you may be ordered to pay financial restitution, possibly upending your business finances.
Legal guidance can be an invaluable source of support for any California business entity embroiled in a potentially litigious commercial dispute.