Getting a business off the ground can be a challenge. Even a Georgia resident with the best idea may struggle to find financing and partners to help them grow their fledgling entity. Many businesses fail within their first few years, and those that do survive often face challenges as they work to establish themselves in their respective industries.
One problem that can create significant issues for businesses is litigation. Even when a business or its owner is not liable for alleged business infractions, they may still have to go to court to prove that they are not responsible for another party’s grievances. This can be time consuming and costly.
Mediation is a cost-effective alternative to litigation for some small business disputes. This post will discuss some of the advantages of mediation over litigation, but as with all posts on this blog, reader should remember that no legal advice is offered herein. Business law attorney are excellent resources of information for those with business law questions.
What is mediation?
Mediation is a form of alternative dispute resolution. It does not involve a judge. It does involve the parties to a dispute sitting down with a neutral third party to discuss their differences and to work toward cooperative solutions to their problems. The parties to mediation come up with their own resolutions and do not rely on the third-party neutral to make decisions about how to resolve their problems for them.
How mediation can save time and money
Going to court can be cumbersome in terms of costs and duration. Often, legal disputes do not resolve in single hearings and multiple hearings must be scheduled over weeks or even months. The schedules of courts can be unpredictable, and individuals may have to wait a long time to have their matters heard.
Going to court can also be expensive. The parties must file different forms with the court and may have to pay for the services of legal professionals to have their matters litigated. Mediation can often be scheduled based on the parties’ needs and does not require the same financial commitments.
Business disputes can often be resolved through mediation. Mediation may not serve the needs of all individuals, and some may still need to litigate their claims for resolution. Attorneys who work in the business law field can advise their clients of their dispute resolution options based on their own specific legal needs.