Business mediation is a process to resolve disputes in business relationships, with six typical stages. A professional mediator, often an attorney, helps both parties reach an agreeable resolution. Mediation is cheaper than civil litigation and requires both parties’ agreement. The process involves introductions, opening statements, private meetings with the mediator, and discussing possible solutions until an agreement is reached.
Business mediation is a process used to resolve disagreements that arise in business relationships. This may include disagreements over land, materials, rights, opportunities, and contracts. There are typically six stages in a business mediation process. Both parties must agree to use the services of a professional mediator to resolve the dispute and to be bound by the settlement reached.
A professional mediator is often an attorney who has completed additional training in commercial mediation. He or she has a combination of legal knowledge and skills, as well as the skills necessary to reach a resolution that is agreeable to both parties. The use of commercial mediation to resolve commercial disputes is steadily increasing because it is a great way to resolve a dispute through a formal process, at a much lower cost than civil litigation. It is important that both parties to the dispute agree on the mediation process and the appointment of the specific mediator.
There are six typical stages involved in a business mediation process, and while the details vary, most mediation follows this pattern. Both parties should arrive at the mediation session prepared to review the details of the dispute and with the authorization to reach an agreement. The amount of preparation required depends on the length of the dispute, but it takes most companies at least two or three days to organize supporting materials in a binder and prepare opening statements and a summary of key issues. A list of possible resolution options and negotiable items can be very helpful during the actual process.
At the beginning of the business mediation session, the mediator ensures that introductions are made and explains the objectives, rules and etiquette of the mediation. It is very common for the mediator to provide a list of expected protocols to everyone at the table. Simple rules are often listed such as no foul language, no threatening behavior, and allowing the other person to speak without interruption.
The next step in the process is the opening statements of the participants. Each party is invited to explain in its own words what the cause and impact of the dispute are and to provide at least one suggestion for resolving it. Interruption or correction by the other party is not permitted. The mediator often calls for a short break at this stage, allowing time to compare resolution suggestions and build a list of agreed upon facts.
Both sides are meeting to review the points raised in the opening statements and propose a compromise or set of options for the resolution. Each party has the opportunity to meet privately with the mediator to discuss the relative strengths and weaknesses of their position and discuss resolution options. After these meetings, the mediator brings the two parties together to discuss possible solutions and work through the details until an agreement is reached. The mediator documents the main elements in writing and both parties sign a copy of the agreement to show that they accept it.
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