You’re probably familiar with the old saying, “Don’t burn your bridges.” Unfortunately, some disputes escalate to a point where preserving any sort of relationship is lost.
Before letting a conflict with your business partner turn into a lawsuit, you may want to consider other options.
An alternative to litigation
There are bound to be disagreements in a business partnership. These could be due to finances, different goals or simply miscommunication. Most times, these can be quickly settled. However, they may become such a significant problem that you and your partner are considering dissolving the partnership. Such unresolved issues not only hurt the business but can also impact any type of relationship moving forward.
Mediation can help preserve relationships and, perhaps, business partnerships.
This alternative dispute resolution (ADR) method requires an impartial third party (mediator) to guide the process. The mediator doesn’t take sides or make decisions. Their role is to facilitate communication and understanding between partners. The mediator can assist partners in moving past their differences and toward a mutually beneficial solution. In addition to resolving the current conflict, a collaborative approach can lay the foundation for improved communication in the future.
Partnership disputes can be expensive and time-consuming, especially when they escalate into litigation. Mediation can save time and money. The process isn’t dependent on the court’s schedule, and businesses can avoid the high legal fees.
Court proceedings are public records, potentially exposing sensitive information and damaging the reputation of the partners and the business. Mediation provides a confidential environment where partners can freely discuss their issues with the assurance that they will remain private.
Furthermore, mediation allows for creative solutions rather than depending on court rulings. Business partners have the flexibility to mutually reach a resolution tailored to their business’s specific needs.
Mediation offers business partners a way to resolve their differences amicably. By eliminating the animosity that comes with lawsuits and litigation, they can move forward with better understanding and communication.
