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4 kinds of business disputes that mediation can best resolve

On Behalf of | Jan 16, 2023 | Business Litigation

Business owners must prepare for disputes that could lead them into court since litigation is the only possibility for settling certain issues.

However, there are four common types of business disputes that lend themselves to resolution through mediation.

About mediation

A form of alternate dispute resolution, mediation takes place with the aid of a neutral party, the mediator, who helps to facilitate a settlement for the dispute in question. The parties who agree to mediation often achieve a more satisfactory solution than they could have obtained in court.

1. Contract disputes

Breach of contract disputes are common in the business world. Contracts are legally binding, and the parties involved must adhere to the contract terms. If there is a failure to act or a deliberate violation of the terms, mediation may present the appropriate form of resolution.

2. Business-to-business disputes

Business relationships are very valuable, and it is in the interest of both parties to keep a relationship intact and moving forward. If a major problem threatens, it is wise to engage in mediation early in the debate to keep the issues from escalating.

3. Employer-employee disputes

Both employers and employees must follow certain laws and requirements. However, disputes can arise over salary or payment issues, claims of unfair termination, poor working conditions or accusations of discrimination. Using mediation to solve problems saves everyone the time and expense of going to court.

4. Partnership disputes

The most common types of business disagreements occur between partners. This is often because a dispute escalates unchecked. It pits leaders against one another and often involves financial issues, the direction management has set for the company or problems over hiring and firing employees. Mediation is a faster, less costly way for partners to resolve their disputes.