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The Pros of Business Mediation

Article Description:
====================

Business mediation is becoming a very popular approach used to
settle disputes in the business community. These disagreements
may come between business partners or even between two different
businesses (this is referred to as B2B).  No matter what the
business relationship is, mediation has several advantages over a
public legal battle.


Additional Article Information:
===============================

751 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2007-01-09 11:36:00

Written By:     Austen Koberstein
Copyright:      2007
Contact Email:  mailto:[EMAIL PROTECTED]



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The Pros of Business Mediation
Copyright (c) 2007 Austen Koberstein
The Law Offices of Joseph J. Nardulli
http://www.JosephNardulli.com



Business mediation is becoming a very popular approach used to
settle disputes in the business community. These disagreements
may come between business partners or even between two different
businesses (this is referred to as B2B).  No matter what the
business relationship is, mediation has several advantages over a
public legal battle.

Anyone who operates his or her own business knows that time is
money.  Business mediation can save the business both.  It can
save time if both parties are genuinely sincere in trying to work
out their differences.  Sometimes only one mediation session is
needed to help resolve the conflict.  This is surely a timesaving
option as compared to spending months in an attorney's office
and/or in court.

Also, meeting only once or twice is absolutely cheaper than
paying attorney fees, court costs, and deposition fees.  With
mediation, the client only pays for the actual time spent in the
mediation sessions, even if the meeting was scheduled for a
longer period of time.

Confidentiality can be very important in the business world.  A
company's reputation can mean the difference between success and
failure.  When a business is having internal problems, the last
thing they need is for the battle to become common knowledge. 
Information such as this could scare away potential clients, or
even be used by a competitor to take away current business
associates.  In a legal dispute, court documents are public
domain and can be accessed by anyone who wants to view them.

Mediation is a much better option for businesses.  In this forum,
the dispute is handled privately, behind closed doors.  A
disinterested third-party will hear the issues in question from
each side's perspective.  He will then work with both groups to
find possible solutions and/or compromises.  A skilled, creative
mediator will often help his clients find a middle ground that
hadn't been thought of before.  Once an agreement is reached
between the parties, hands are shaken and business resumes,
without the further complication of public scrutiny.

In a court case, there is usually one winner and one loser.  Both
sides present their cases to the judge and he alone decides the
outcome.  The business partners have no control in the decision
making process. Someone goes away from the proceedings happy and
the other person leaves feeling frustrated and angry.  The case
is decided but the business relationship is ruined.

The goal of mediation is to create a win-win situation.  Since
both parties come to the meeting willing to give and take a
little, this is very often the outcome.  Even though each side
may have had to give in on one point or another, the fact remains
they were able to work together to find a solution.  This type of
communication is essential in a successful business partnership. 
With mediation, an agreement is reached while preserving the
business relationship.  This is perhaps the most important
outcome of the mediation process.

Some may wonder if the mediation agreement is binding?  The
answer is, yes, it is.  Once both parties agree, a contract can
be drawn up, signed, and will be legally binding.  A contract
such as this can even be used to address possible future problems
before they even happen.

So, what happens if an agreement is not reached?  Can information
used in the mediation be brought up in a court case?  For this
question, the answer is a resounding no!  All parties involved in
the mediation process are required to sign a confidentiality
agreement.  This means that nothing that is said or discovered
during the mediation process can be used as evidence in a court
case.

Therefore, the only question left to answer is, what is there to
lose by choosing mediation over a legal battle?  Obviously the
answer is, nothing!  Business mediation is a fast, inexpensive,
confidential process that most often results in a win-win
situation for everyone involved.  Business reputations are not at
risk and relationships remain in tact.  If a resolution is not
reached, at least the effort has been made, and there will be no
negative repercussions as a result.

Interestingly, even Bill Gates looked to mediation during
Microsoft's very publicized legal battle with the Justice
Department and 19 of the United States.  Unfortunately, in this
case, mediation was not very effective.  Of course, there was
very little incentive for Gates to try to appease his accusers. 
So in the end, unless you are a monopoly-holding millionaire with
nothing to lose, a quick, private compromise is probably more
preferable to a public three-ring circus.




---------------------------------------------------------------------
Written by: Austen Koberstein. The Law Offices of Joseph J. 
Nardulli serve business and corporate clients in Orange County 
and Southern California. They specialize in 
(http://www.josephnardulli.com/mediationarbitration.html) 
mediation, arbitration, 
(http://www.josephnardulli.com/employmentlitigation.html) 
and employment litigation. You can learn more about litigation, 
mediation and arbitration at: http://www.JosephNardulli.com 


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