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Should you mediate your business dispute?

On Behalf of | Dec 23, 2023 | Business Litigation

Business disputes are inevitable, and most Maryland business owners know this. Disputes can arise over almost anything, and finding the right solutions sometimes seems impossible.

You may assume that your only option to resolve your business dispute is through going to trial. While traditional litigation is available, Maryland also offers mediation through the civil courts.

Your contracts might require mediation

Business contracts sometimes have an alternative dispute resolution clause, which requires parties to arbitrate or mediate disputes before going to court. Even without this clause in your contracts, you can still try mediation as an alternative to litigation.

There are many benefits to mediation that you should consider. Mediation is free and generally quicker than litigation.

Why mediation is attractive to business owners

Mediation could be a particularly appealing option to business owners because it is confidential. Litigation means information about your business and the dispute you are in could be revealed to the public.

This may damage your business and personal reputations, even if you ultimately win your court case. You could be seen as someone who sues to get what they want.

Alternatively, your mediation session is private and confidential. It is conducted by a mediator, who is a neutral third party whose goal it is to help you resolve your dispute amicably.

You have the power in mediation

A mediator is different from a judge because they have no power to decide your case or make decisions. This means you have the power to determine if you want to settle your case or not.

If you believe the other side is being unreasonable and settlement is simply not possible, litigation is still an option for you. However, litigation could permanently destroy your business relationship with them, which may not be what you want.

You can have an attorney with you at mediation. They can help ensure your business interests are protected and negotiate on your behalf.

Mediation is not always successful, but it is usually worth trying. You may be more pleased with the results of mediation versus traditional litigation.