Using Mediation to Resolve Business Disputes in North Dakota

Every business owner will likely face a dispute at one point or another. Fortunately, not every conflict needs to be litigated in a courtroom. Business mediation is a form of alternative dispute resolution that allows parties to settle disagreements outside the courtroom, without incurring the time and expense of litigation. Not only can this method be cost-effective and efficient — but it can also help to free up a businesses’ time and resources so its focus can remain on optimizing the company’s operations. 

What is Business Mediation?

Business mediation is an alternative to litigation that takes place outside the courtroom. It uses a neutral third party called a mediator who assists the parties with resolving their dispute by helping to facilitate communication. While a mediator cannot provide legal advice or make decisions, it’s best for all parties to have the representation of an attorney who can protect their rights throughout the process. 

Depending on the type of conflict and the willingness of the parties to settle the case, mediation can help resolve a dispute in as little as little as one or two sessions. However, more complex disputes can often take longer to resolve. If the parties can reach an agreement in mediation, a settlement will be drafted and submitted to the court to become a binding order. In the event negotiations fail and the parties are unwilling to compromise, they can go through the litigation process to resolve the conflict. 

What Types of Business Disputes Can Mediation Help Resolve?

Nearly any type of business dispute can be resolved through mediation, as long as the parties are willing to compromise. The process can help to clear up misunderstandings between business partners, allow the parties to a contract find ways to alter the agreement, and resolve disputes with employees. Notably, mediation can be used by all types of businesses — from startups to small companies, family-run businesses, and large corporations. 

Some common types of business disputes that can be resolved in mediation include the following: 

• Contract disputes
• Vendor disputes
• Partnership/shareholder disputes
• Employment law matters
• Conflicts with clients or customers
• Business torts
• Commercial real estate disputes
• Franchise conflicts 

The mediation process typically works best when both parties are willing to participate and have an ongoing business relationship that they want to preserve. If either party is unwilling to work with the other or there is a significant power imbalance in the business relationship, mediation may not be an appropriate method to resolve the dispute.    

What are the Advantages of Business Mediation?

Whether your company is facing a dispute in connection with a breach of contract, an employment matter, or any other type of conflict, business mediation has many advantages over litigation. In contrast with litigation, mediation can help the parties in a business dispute reach a resolution that is tailored to their specific needs. It empowers the parties to craft their own mutually agreeable solutions — and can prevent conflicts from escalating any further. 

Other benefits of using business mediation to resolve a dispute can include the following: 

• Efficiency — Unlike litigation, which can be time-consuming, mediation can often help the parties reach a resolution in less time.  
• Cost-effectiveness — Mediation is generally much more cost-effective than litigation since it avoids the high costs associated with court fees, attorney fees, discovery, and depositions.
• Amicability — Since mediation is non-adversarial, it can help to preserve and strengthen continuing business relationships.
• Flexibility — Mediation can allow the parties to find creative solutions that might not be available in the courtroom.  
• Confidentiality — Whatever is discussed in mediation is private and does not become part of the public record. This can ensure your sensitive business information remains confidential and the reputations of the parties are protected.
• Control — The parties in a business dispute can remain in control of the outcome of their case by using mediation, rather than allow a judge to decide important issues that will affect their companies. 
• Inadmissability — Under most jurisdictions’ Rules of Evidence, matters discussed it an attempt to compromise a dispute are not admissible for the purposes of proving fault or liability.  See, e.g. F. R. Evid. 408.

Additionally, mediation can eliminate the stress that is often inherent in business litigation. During the business mediation process, each side is encouraged to collaborate and express their concerns openly. This can help ensure the parties engage in a respectful dialogue and stay focused on finding solutions, rather than the underlying conflict.   

Contact an Experienced North Dakota Business Law Attorney

Business mediation can offer many advantages when it comes to settling a business dispute. It’s essential to have a skillful business law attorney by your side who can best advise whether mediation is appropriate to resolve your case. Located in Fargo, Fremstad Law offers dedicated counsel for a wide range of commercial disputes in North Dakota and Minnesota. We welcome you to contact us online or call (701) 407-8326 to learn how we can assist you.