Should you mediate your business dispute?

On Behalf of | May 28, 2024 | Mediation and Arbitration |

If you are an Ohio business owner, you have probably heard of business mediation as an option for resolving business disputes. But is it right for you?

Although it is true that mediation has several potential advantages over traditional litigation, sometimes litigation is the better alternative.

What happens at mediation?

Mediation is not required by Ohio courts but it is an option. Mediation involves a meeting, or series of meetings, between you, the other party and a trained mediator.

The mediator tries to help resolve the business dispute by allowing each of you to explain your positions and offering suggestions for guidance. Communications during mediation are confidential.

Mediation is generally quicker and less costly than litigation. It also increases the chance of maintaining a good business relationship with the other party.

However, if you do not resolve the dispute, the time you spent is wasted and it only means you are in court later than you could have been.

Mediation requires good faith on both sides

Additionally, you must be sure that the other party is participating in the mediation in good faith. This means sharing all information and not withholding anything.

Since mediation is optional, the other party must truly try to resolve the dispute. If you get the sense that they are showing up just to appear like they are making an effort but have no legitimate desire to cooperate, compromise or find a solution, mediation is probably a waste of your time.

Even if you resolve the business dispute in mediation, concerns may still exist over the enforceability of the agreement. Since it is a voluntary agreement entered into between you and the other party, if the other party does not fulfil their end of the agreement, you will likely have to go to court to enforce the agreement through contract law.

Running a business requires you to make tough decisions at times. When a dispute arises, sometimes you need the certainty of a court order.

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