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Mediation can save your business from the pitfalls of litigation

by | Mar 9, 2023 | Business Litigation

Even if your business sees significant financial success, disputes will inevitably come up. Doing business in New Jersey can be profitable, but it is not always conflict-free.

Ultimately, when you are facing a business dispute it is likely that you want to resolve it in a way that does not hurt your business’s bottom line. One way to do this is through business mediation.

What is business mediation?

Business mediation is a form of alternative dispute resolution. Each side of the dispute will attend mediation sessions run by a professional neutral party referred to as the mediator. Mediation is usually voluntary, although sometimes a court or government agency mandates mediation.

The goal of mediation is to help the parties reach a resolution that addresses their respective needs and goals. This way the parties can either move forward doing business together or can go their separate ways without animosity.

At the mediation sessions, the parties will discuss their opinions and concerns either together or separately through the mediator, who will serve as a facilitator. The parties will attempt to negotiate an agreed-upon solution to their dilemma. If the parties are successful, a court can approve the settlement, making it legally binding.

The benefits of mediation

Business mediation can be one way to help those facing a business dispute reach their goals for less cost than traditional litigation. While the parties can still be represented by an attorney, mediation does not involve court costs, the costs of collecting evidence, the costs of drafting legal documents and the costs of performing legal research.

There are also time costs associated with a trial. Trials can take months or even years to conclude. This is a lot of time spent trying to fight to be right, rather than funneling these efforts toward the betterment of the business.

Ultimately, businesses benefit when employers, employees and other related parties can focus their time and money on business operations, rather than in-fighting. Mediation can be one way to resolve business disputes in a way that promotes business success.