Consider Mediation with Business Partners Before You Reach the Breaking Point

Business partnerships can be like marriages in many ways—and with just as many ups and downs. You may have entered into a venture with one or two likeminded souls, working together to produce a new concept or product and business model. A significant bond is usually created when you head into the trenches together, braving ownership of a new business and all the challenges that accompany it. This is also a critical relationship that must be formed correctly from the beginning, with a partnership agreement drawn up by an experienced business attorney like Shane Coons.

A Good Partnership Contract Outlines Expectations & Duties

A good partnership contract allows everyone involved to know what to expect, to include percentages of ownership, how, when, and how much of profits will be disbursed, duties within the company, dissolutions of partnerships, and very importantly—a dispute resolution clause. This last clause allows you to decide how to solve legal issues before you are angry at each other. The dispute resolution clause usually outlines whether litigation, arbitration, or mediation will be used to decide the issue, along with where, and who would be responsible for paying any legal fees, should that be to attorneys, arbitrators, or mediators.

Mediation May Help Preserve Valuable Partnerships for the Long-Term

Mediation is very popular today for resolving a variety of legal issues, but especially those where it is important to preserve long-term relationships. The business partnership is a perfect example of this, and especially because the stability and financial health of a company can be at stake. The mediator acts as a completely neutral force to help all parties involved come together and reach a resolution. The mediator guides rather than deciding and offers extra help if there may be a standstill in discussing the legal matters at hand. They may also have extensive experience relevant to the business matters at hand, along with understanding the importance of business partnerships, but the frustrations that may be involved too.

Mediation Offers a Relaxed Setting Promoting Positive Discussion

Mediation offers a much less adversarial setting than the courtroom, and it is confidential rather than public record. The mediator will often interview the business partners before the process officially begins, working to gain a comprehensive understanding of the issues needing resolution. The partners can hash out their issues in a more easygoing environment, with easier scheduling, less expense, and greater efficiency all around. The mediator is often able to help promote such positive discussions that the business partners leave strengthened—as does their business.

Once an agreement has been reached, the mediator is responsible for drawing up the official agreement to be signed by all authorized parties. At that point it becomes binding, and everyone involved is expected to abide by the decisions they made during the mediation. If a settlement is not agreed on and signed, the mediation is non-binding.

Contact Us for Help Now

Attorney Shane Coons is highly skilled in all methods of ADR, to include mediation, arbitration, and California’s judicial reference system. If you have a legal issue and want to learn more about the best alternative dispute resolution process for your case, please call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.

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Consider Mediation with Business Partners Before You Reach the Breaking Point

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