In Business Disputes, is it Beneficial to Mediate Rather than Enter Into Litigation?

When companies become involved in business disputes over trademarks, copyrights, business agreements, contracts, or even partnerships it can be nerve-rattling to consider entering into the litigation process.  Not only can the prospect of filing a lawsuit make you uneasy, it can consume a lot of time – not to mention the costs both in terms of financial and emotional.  Mediation, an ADR (alternative dispute resolution) may be preferable in certain situations and can prevent the parties involved from becoming involved in a contentious lawsuit.

Ultimately, mediation is a way for both companies to peacefully settle certain business issues with the assistance of a mediator, who is a “neutral” party and often works in the position as both advisor and evaluator.  A professional mediator basically considers the arguments from both sides of the table, then determines the strengths and weaknesses of both sides.  Another type of mediator is the transformative mediator, who basically guides those involved from both companies who are having communication issues to a resolution made between the parties, on their own.

The biggest advantage of choosing mediation over litigation is cost, obviously.  However, many company owners find that mediation is a way to handle business issues in a way that is less hostile, more friendly, and ultimately lets both parties take part in coming up with a solution, rather than putting it all in control of a judge.  Essentially, companies are more empowered and relationships between companies can often be saved, because both are part of the solution due to their ability to take a direct and active role in the ultimate outcome.

There is no question that in many situations litigation is the only solution.  However, mediation offers several advantages to businesses including resolution that is more satisfactory to both parties, and often quicker settlement of the issue which saves all parties time, effort, and money.

As Los Angeles business attorneys who have successfully represented clients with all types of issues including business disputes, trademark infringement. intellectual property, contracts, business mergers and more, count on Spotora & Associates to determine the most appropriate path for your situation.

This entry was posted on Tuesday, June 11th, 2013 at 1:09 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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