When to Litigate & When to Mediate in Business Disputes

Business disputes can get downright ugly. The stakes are high and emotions are equally elevated. But one thing that doesn’t need to escalate out of control is the cost it takes to resolve the dispute.

When to Mediate in Business Conflicts

The cost to resolve a business dispute can quickly climb if alternative methods to litigation aren’t pursued. While there are occasions that call for litigation, mediation is frequently a better choice for resolving a business dispute.

Mediation is an effective way to resolve commercial business conflicts because it allows both parties to air their grievances in the presence of a neutral third-party, and a resolution can sometimes be achieved in as little as a day.

The role of the mediator is to help opposing sides find a common ground by facilitating negotiations and guiding the parties to their own mutually agreed-upon solution, rather than leaving the decision in the hands of the court or a jury. The outcome is not only cheaper and less time-consuming than litigation, it may also preserve the business relationship and enable it to continue.

When to Litigate in Business Disputes

Mediation is generally a strong first step to take in a business dispute and often it is included as a clause in partnership agreements, but there are occasions when mediation doesn’t work.

If one or both parties are not willing to have an open and honest conversation and be reasonable in their requests, it will be difficult, if not impossible, to make any kind of headways in resolving the conflict.

After alternative methods to dispute resolution have failed, it may be time to pursue litigation. Be sure to talk to a business attorney to discuss your rights and options.

At Silverberg|Brito, PLLC, our commercial law team helps handle everything from the complex corporate litigation of publicly traded companies to partnership disputes. If you need help resolving a business conflict, get in touch with us today.

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