How to resolve a dispute without litigation

There is a solution to every conflict, even complex disputes between businesses. Litigation is always an option, but in many cases, it should be used when all other avenues to resolve the problem have failed.

That does not mean your company should give up or give in just to avoid a lawsuit. It means negotiating firmly and in good faith. It can also mean turning to alternative dispute resolution methods like mediation.

Your contract with the other party might require mediation as a step toward resolving conflict. Or you can suggest it as a way of working out a settlement in a collaborative way that minimizes costs and potentially preserves your business relationship.

The typical mediation process

In mediation, the two parties meet with a mediator, a neutral third party who typically is highly experienced in the area of the law in dispute. Each mediator has their own style, but the most common technique is to ask questions of each side, offer perspectives and help the two sides negotiate a settlement. Your attorney can also be there to guide and represent you. For parties willing and able to use it, mediation can be beneficial.

Direct negotiation

However, it is not the only way to find a reasonable solution. If mediation is not the preferred option, you and your attorney can also negotiate with the other side directly. This can be a challenging process if the other side is unable or unwilling to negotiate in good faith. But an experienced business attorney will know which strategy to employ to leverage the best possible outcome. Best possible outcomes might include the other party performing as promised in the terms of the contract, or it might include compensation for damages.