The court system is available to anyone who has a dispute. Yet, contract dispute cases can be drawn out and expensive.
The good news is that there are ways to settle such disputes faster. The most popular method is mediation.
First, Try Mediation
Mediation involves two parties that are entwined in a contract dispute agreeing to meet with a mediator who is a neutral third-party. Often, the mediator is a retired judge or another attorney.
Mediation conferences are held in a neutral and mutually agreeable location. Both parties attend, along with their attorneys.
A mediator tends to have training in negotiation techniques, the ability to listen effectively, and the skills to restate each party’s position in a way that guides them toward a resolution that works for both parties.
It is not up to the mediator to come up with a resolution. Rather, it is his or her job to help the parties reach a solution.
If an agreement is reached at the end of the mediation process, it acts as a contract between the parties. So, should the contract be breached, the party approach a court to enforce the contract.
The Benefits of Mediation
Mediation can offer several benefits for those who don’t want lengthy, legal dispute cases.
The biggest benefit is that it often costs less than litigation and is far less time-consuming. The hourly rate for a mediator is typically a great deal less than what you would pay an attorney when you take the dispute to court.
What’s more, both parties have the chance to be directly involved in the resolution of the dispute, often preserving the relationship between the parties.
Another benefit of mediation is that it offers confidentiality and more flexible scheduling for those who need to meet at times different from those set in a court.
You Can Start Mediation Early
Mediation can be useful early on in the dispute process, especially when a legal claim is threatened or anticipated but yet to be filed.
You can also seek mediation after litigation if each party is able to set aside hard feelings and hear the other out.
What About Arbitration?
Arbitration is another option when it comes to contract disputes. During the process, an arbitrator listens to each party and then decides who is right.
This differs from mediation, where the mediator guides both sides to remain focused and reach an agreement without getting too far off course.
You Can Settle A Contract Dispute Faster
One of the biggest benefits of mediation is the time and cost, both of which are far less than arbitration or traditional litigation. It also gives you the chance to improve or repair your relationship with the other party. Litigation and even arbitration can make bad relationships worse.
With contract disputes, it is often the case that the parties need to work together in the future, so it’s important to maintain the relationship. On the downside, mediation is a tool that is often abused in terms of intimidation. If one or both parties aren’t prepared to compromise, then a drawn-out and often costly litigation process may be necessary, and bridges may be burnt for good.
The next time you encounter a contract dispute, weigh up the pros of mediation before you file for litigation.
Your best bet is to hire an experienced attorney and mediator to help solve your contract dispute as quickly and amicably as possible, with the right advice that works for you and the other party.
If you need help with contractual issues, contact Principal Law Firm for experienced and helpful guidance.
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