Small Business

From time to time all businesses encounter problems, for example with their customers, suppliers, competitors or employees. Most of these can be dealt with quickly and efficiently. However, sometimes the problem escalates into a dispute which cannot be resolved by informal negotiation – in these cases, mediation can be the most effective way forward.

Mediation can allow disputes to be resolved faster and more cheaply than litigation, and can minimise damage to the relationships and reputation of the business. The procedure is completely confidential, which can be particularly helpful in resolving disputes involving confidential or commercially sensitive information (which might otherwise be revealed in court). It can also help businesses avoid unwanted attention from the press, or competitors. In any event, courts generally expect parties to a dispute to try “Alternative Dispute Resolution” (ADR) before litigation.

Mediation is also a good way of dealing with disputes in businesses as the parties often want to emerge with a continuing relationship. The aim of mediation is to arrive at an outcome from which all parties benefit, and from which no party is seen to “win” or “lose”.

Mediation can produce a quick, robust and pragmatic settlement, which means less cost, time and strain on the business than would be incurred in litigation. Moreover, the parties can agree on the settlement terms, they do not have to hand over control to a court. A mediated settlement can include terms which would not be available to a court to impose - for example, new arrangements for on-going business which accommodate each party’s concerns.

@CogentMediation