Responsive And Personalized Legal Counsel

  1. Home
  2.  » 
  3. Business Law
  4.  » Mediating business disputes

Mediating business disputes

On Behalf of | Oct 13, 2022 | Business Law

Mediation is one of the most common dispute-resolution tools available for businesses and individuals in Oklahoma. It does not have legal requirements associated with the process like arbitration or litigation. But it does provide experience, a fresh perspective, and a helpful outlook. In many instances, the input of a mediator is all that is needed to come to a solution.

What is mediation?

Mediation is the process by which two parties agree to bring in a third party to help them broker a deal in a negotiation. The mediation process is different from litigation or arbitration in that the decisions of the mediator do not bind both parties. The mediator may offer a compromise settlement or a suggested resolution. In most cases, they mainly offer ideas and a different perspective on the issues that both parties may have spent months or years wrangling over.

How mediation can help

Mediation is particularly effective when two parties are early on in negotiations or are relatively close on some points. It is a process in business law that grants substantial freedom to the parties involved. They are able to communicate freely and work together in order to solve their issues. The parties involved are not obligated to do anything that a mediator tells them to. Despite this flexibility, the success rate of mediators is high. Mediators offer a fresh perspective that can be helpful for many parties stuck on numbers or small, petty differences.

Mediation is also helpful when there has been a disagreement or miscommunication early on in a negotiation. The negotiation may have been halted because both sides cannot agree on ground rules for the process or and trust each other to act in good faith. A mediator may be able to provide the third party required to rebuild trust. With that third party, both sides can start to develop ground rules and work towards a solution to their problem. In these situations, a mediator can be the difference between success or failure for a substantial business deal.

Archives

Categories