While contracts may often be there just to be broken, most of the time they serve an important purpose, outlining exactly what two parties or more are agreeing on–and working to prevent difficulties in resolving corporate infighting. This is usually written in the contract’s dispute resolution clause, stating how the parties will present such an issue to each other, whether it will be solved by litigation, arbitration, mediation, or judicial reference.
Depending on the circumstances, the parties may be served best by using the traditional route in the courtroom, or alternative dispute resolution; however, there may not be any choice if there is a contract already outlining how disputes are to be handled. Usually the location of the venue for ADR will be outlined in the contract, as well as who is to pay attorney’s fees, should there be any.
Mediation is often a good recourse for two parties who are both open to reaching a resolution, collaborating with a neutral party in the form of a mediator while still maintaining greater control over the outcome. The mediator is trained in guiding parties to a resolution, and privately so, in comparison to litigation which is public record. When there are issues within a corporation, usually between partners, mediation can be a good forum for airing grievances that may have been building for a while, having finally come to a head. The mediator may be able to neutralize the dispute long enough for both parties to look at the situation in a new light and reach a suitable solution that leaves both sides satisfied—and perhaps still willing to work together in the future.
Affordability is a usually a benefit to mediation also, along with expediency in scheduling—and sometimes an outcome provided within hours. In more complicated matters, some parties may view mediation as too basic a method for exploring a case; for example, evidence cannot be presented, discovery is either not allowed or extremely limited, and there is usually no transcription (or any notes) of the mediation to refer to later. Once a settlement agreement has been signed, the mediation usually cannot be appealed either.
Mediation has become popular over the years also because of the casual atmosphere. It is often one that promotes a less adversarial attitude, helping to preserve personal or business relationships. Mediation may often offer a solution even after a court battle has ensued.
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.