Running a business involves multiple interactions with other individuals and organisations. Like any relationship, business relationships can sometimes be tricky to navigate. Problems will arise from time to time, and as a business owner, it is important to know what options you have. Failing to resolve commercial disputes quickly can cause disruption and risk to your business. Unresolved conflict and/or legal disputes can be expensive and damaging.
What is business mediation?
Disputes can often arise between business partners, property owners and their tenants, with suppliers and contractors, and between businesses and government organisations and so on.
Mediation is a voluntary, confidential and cost-effective way to resolve conflict that you are unable to sort out yourself before the dispute reaches boiling point. By preserving necessary ongoing relationships and contractual or other arrangements, you can focus on what you do best – running your business.
Business mediation is essentially a structured but flexible process involving a facilitated discussion about the conflict. The mediator is an independent third party who essentially facilitates a discussion between the relevant parties. The aim of the meeting is to help identify the issues creating the conflict, focusing on the interests and needs of both parties, and assist the parties to explore options for negotiating mutually agreeable solutions.
The mediator does not make decisions, rather, they guide and support the parties to discuss the conflict and find an appropriate outcome. The mediator can give feedback from a neutral perspective to help the parties consider all necessary legal and factual aspects relevant to the conflict.
What types of business disputes are appropriate for mediation?
Most business disputes are appropriate for mediation. Some examples include:
- Disputes between business partners – including discussing terms when partners decide to split and go their own way (sometimes referred to as ‘Business Divorce’)
- Conflict between contractors and subcontractors
- Contract disputes and breaches –services, supply and distribution, manufacturers
- Disputes with clients/customers of your business
- Intellectual property, copyright, trademarks, competition
- Landlord and tenants – shops, restaurants, offices, industrial and commercial premises
- Lease, license and contract disputes between businesses and government departments, local councils etc
- Debt recovery and payment terms
- Directors duties, governance, shareholder rights
- Workplace conflict or injury
- Insurance issues… and the list goes on.
Why choose Mediation to resolve my business dispute?
Mediation is a quick and cheaper way to solve problems, compared with legal proceedings. The process helps participants to communicate effectively about the issues and discuss options for resolution with a focus on the future.
Another important aspect of mediation is that it’s confidential, so parties are free to have full and frank discussions without concern about what is said ending up being used in court later should the matter escalate.
If you are unable to reach an agreement, you can still go to court. Often, mediation is a necessary step before a business dispute can be taken to a court or tribunal, so it is definitely a worthwhile exercise Parties commonly continue their negotiations or agree to meet again, and more than 90 percent of matters resolve via mediation.
What are the benefits of Business Mediation?
Effectively managing commercial disputes via mediation is a great way to reduce legal and administrative costs for your business, so you can expend those resources on more productive costs.
There are many advantages to using mediation for business conflict resolution, including:
- Fast – resolve the problem quickly and share the cost
- Affordable – far cheaper than litigation
- Confidential – protect your brand and reputation
- Restore productivity and improve valuable working relationships – reduce stress, prevent partnership dissolution, preserve ongoing commercial relationships and retain valued staff.
- Flexible, unbiased, collaborative, independent process – tailored to your business and dispute type
- Avoid ongoing conflict and/or resolve legal proceedings
- Empowering – self-determined outcome, more creative solutions
- Minimise risk from unresolved conflict
What steps do I need to take to start the process?
Carefully select your mediator – see below.
Next, decide who will represent your business interests at the mediation – you? A manager? It is important that someone with authority to make decisions on behalf of your business participates in the mediation.
During the intake process, it is necessary to determine what type of information needs to be exchanged or shared before the mediation takes place. Your mediator can help you identify the type of information that might be usefully shared prior to the mediation, or collated to bring along.
Prepare a statement to summarise your position. This assists you to clarify the issues and what you hope to achieve at the mediation session. You can include questions, possible options, concerns, needs, anything at all that relates to the cause conflict cause and/or solutions from your perspective. This will assist the mediator to understand your position before the mediation.
How do I find a Business Mediator?
There are a few ways to find the right mediator for your commercial dispute. You can search local listings, but it is recommended that you use a nationally accredited mediator (NMAS). The best way to find one is to search your state or region on:
https://www.resolution.institute/resolving-disputes/get-a-professional
Adaptive Mediation can help if your business is located in Wollongong or anywhere in the Illawarra, Shoalhaven, Southern Highlands or Greater Sydney. Contact us to find out more or ask any questions about your commercial mediation needs.
0 Comments