The high-stakes environment of the corporate world can create tension between business partners. Knowing how to resolve such disputes isn’t easy. Some people ignore the issue and hope it resolves itself after time. Others may jump straight into litigation.
The truth is that neither of these approaches is ideal, and there are other options. One such option is mediation. Why mediate a partnership dispute?
It can be efficient
Every second that partners are in dispute means decreased productivity. Over a few days or weeks, this could mean losing thousands of dollars. Over several months, a partnership dispute can place the entire company in jeopardy.
Mediation aims to find efficient solutions. The majority of mediation cases are settled within a few weeks or months, and progress can come in between sessions. Partners involved in mediation don’t view each other as adversaries in a deadlock. Rather, they are business partners going through a rough patch, but working together to get through it as quickly as possible.
It can preserve the relationship
While a business partnership can be dissolved, this isn’t necessarily the best thing for the company. It is virtually impossible for partners to continue working together after litigation. With mediation, this isn’t the case. The process is much less adversarial and it focuses on building bridges rather than destroying working relationships.
With mediation, the best interests of the company can still be put first.
Litigation is not the only answer to business disputes. Alternative dispute resolution techniques like mediation are becoming increasingly popular. To find out more about this process, you may find it helpful to seek some further legal guidance.