No matter what business you are in, it is usually to your advantage to try and avoid litigation at all costs. Litigation can be very expensive and it often ends up taking up a great deal of time. Not to mention, litigation can seriously harm business relationships.
However, dispute is inevitable. One method of resolving disputes between business entities without resorting to litigation is mediation. According to FindLaw, mediation is typically quicker and less expensive than litigation; it also offers you greater control and helps preserve business relationships.
What makes mediation quicker and cheaper?
One of the best things about mediation is how quick it is. Since you do not have to wait for the courts to have time to hear your case, you can start mediation almost immediately. Comparatively, lawsuits can potentially take years.
Mediation is usually far less expensive since employing a mediator is less expensive than an army of lawyers. Not to mention, you can also look into nonprofit organizations that may offer mediation for free.
What about control and relationships?
In a mediation situation, the parties are in control of everything. In the courtroom, the judge has the final say on all matters. With mediation, the parties can communicate directly with each other and thus control the final outcome of the conversation to a greater degree.
This is also part of why mediation is good for business relationships. Employing a skilled mediator who can guide the conversation between parties can help with potentially heated issues. Mediation is inherently collaborative whereas litigation is combative. Additionally, mediation is often less of a win-lose situation, so everybody can walk away from the table with face intact.