What Should I Do If Mediation Does Not Work For My Business Dispute?

As a business owner, you may choose to explore mediation as a way of resolving a dispute. The mediation process is often an effective alternative dispute resolution method, but failed mediation can put you in a difficult position. However, you will still have multiple options available to you. Knowing how to navigate your options is important for putting an end to your differences. 

This article will explain some options that you may have available to you to resolve your business dispute. It will also offer some guidance as to the best options depending on your situation. 

Consider Why the Mediation Failed

The first step is to examine your failed mediation and contrast it with what could have been a successful one. You will want to identify the problems with your mediation process first. This can help diagnose the differences between you and the other party. Although reaching an agreement is never easy, it can sometimes result from an unreasonable refusal by one of the parties. By doing this, you can better understand the parties’ respective positions, which will be important for your future decision. 

Alternatively, it can also sometimes be because the mediator was not particularly effective. In this case, you could explore having a different mediator.

Choose Not To Pursue Your Dispute Further

An overlooked option is to decide not to further pursue your business dispute. Of course, this will depend heavily on the dispute’s topic. Some problems cannot be overlooked. However, in a limited number of situations, it could be best to cut your losses and move on. This is usually the advice given in family disputes but could equally apply to business disputes or commercial mediations.

You could also come back and try dispute resolution or mediation later by not immediately pursuing the issue further. This may allow the parties to rethink their views and position on the issue. 

Consider Arbitration

You may consider arbitration if your dispute cannot be resolved through multiple mediations and if it is too great of a problem to cut your losses. Arbitration is another alternative dispute resolution method available to you. It involves taking your case to an arbitrator. The arbitrator will decide after hearing each party’s respective positions and views. There are several reasons you may consider arbitration. For example:

• your dispute may not be resolved through another attempt at mediation; 
• the dispute may be too serious a problem to simply cut your losses; or
• the other party may be uncooperative. 

This can be an attractive way of resolving a difficult problem. Not only will your differences be conclusively decided, but the agreement will be legally binding. The arbitrator will take into account both of the positions of the disputing parties.

One issue with arbitration, however, is that it is likely to damage your relationship with the other party. This might not be a problem if you are not planning on working or dealing with the other party again. However, if the other party is someone who you have a business relationship with that you would like to maintain (such as a supplier or distributor), arbitration might not be the best choice.

Consider Litigation

Litigation is very similar to arbitration. The key difference is that your case will go to court to be decided by a judge. One benefit of this is that you will receive a quality judgment. Further, if the court decision does not go in your favour, you can appeal it. 

However, court proceedings are generally costly and damage your business’s cash flow and brand. As a result, it is generally recommended that you view litigation as a last resort. If you do pursue litigation, you must hire the right lawyers who can present a strong case in your favour.

Key Takeaways

If your mediation has failed in the first instance, it is a good idea to consider the reasons for your differences with the other party. It is common to attempt multiple mediations before reaching a positive agreement for both parties or adequately resolving a business dispute. 

If the mediation process is still not benefitting your business, you may want to consider alternatives. One choice is to revisit the dispute at a later point. If this is not viable, you can choose to pursue other dispute resolution methods, such as arbitration or court proceedings. If you plan on arbitrating or litigating, you should seek professional legal advice first. Our experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.  

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