How Is the Mediation Process Handled in Commercial Disputes?

 Posted on August 16,2022 in Litigation

There are many types of disputes that may affect a business, and determining the best ways to resolve these conflicts can sometimes be difficult. The approach to addressing business disputes may differ depending on whether a dispute is internal and affects a business's partners, shareholders, or employees, or whether it is external and involves the relationship between a business and other parties. 

While resolving a dispute effectively is likely to be the primary goal in these situations, it may also be necessary to maintain important business relationships and avoid ongoing issues. In many cases, businesses will be looking to find solutions that will allow disputes to be resolved without the need for litigation. Mediation, a popular form of alternative dispute resolution, can be one of the best ways of doing so.

Steps Followed During Business Mediation

Mediation is a relatively informal process that allows the parties to work together to find a mutually beneficial resolution to their dispute. Each party may be represented by an attorney during the mediation process. A mediator, who is a neutral third party, will guide the mediation and help the parties to communicate with each other. The mediator will not make any decisions or force the parties to agree to anything, but they will instead facilitate communication and help the parties explore different options as they work to reach their own agreements. This can be an important benefit of mediation, as it allows the parties to have more control over the outcome of the dispute.

The mediation process will typically begin with a conference where the mediator will explain the mediation process and the ground rules that will be followed during negotiations. The parties will then have an opportunity to make statements where they can explain their position on the dispute. Each party may respond, and discussions may ensue, allowing the parties to begin the negotiation process while providing the mediator with information that will help them clarify each party's position and determine where compromises may be made.

The mediator may then meet with each party separately in a process known as "caucusing." This will allow the mediator to explore each party's claims and objectives in more detail and help identify any areas where the parties may be able to reach an agreement. The mediator may relay what was discussed with one party to the other party, providing guidance on how agreements may be reached and suggesting possible compromises. 

The mediation process will continue until the parties reach an agreement or it becomes apparent that an agreement will not be reached. If agreements can be made on all outstanding issues, the terms of the settlement will be put in writing and signed by both parties. This written agreement will be binding on the parties. If certain issues cannot be resolved, the mediation process may be terminated, and the parties will be free to pursue other options for resolving their dispute, such as arbitration or litigation.

Contact Our Fort Lauderdale Commercial Mediation Lawyer

If you are involved in a commercial dispute, mediation may be an option worth considering. The experienced Surfside business mediation attorney at The Elliot Legal Group, P.A. can help you determine whether mediation is right for your situation, and our firm can represent you during the mediation process. Call our office at 754-332-2101 to schedule a consultation.

Source:

https://www.adr.org/sites/default/files/document_repository/A%20Guide%20to%20Commercial.pdf