Commercial disputes can cost Florida business owners significant financial losses if they go to trial. Using alternative dispute resolution tactics to keep the conflict out of the courtroom may greatly reduce the financial cost. Business owners often choose mediation as their alternative dispute method.
Definitions of conciliation and mediation
Although mediation and conciliation both provide a non-courtroom approach to settling disputes, there are a few key differences. In conciliation, both parties and their legal representatives meet to discuss the dispute and come up with a resolution. In mediation, this process includes a neutral third party who facilitates a resolution.
The benefits of both mediation and conciliation include:
• Cases can be resolved more quickly
• Businesses likely spend less on legal fees
• Agreements receive judge approval and become legally binding
• Resolutions may allow more flexibility than traditional trials would permit
Common commercial business disputes
When dealing with other companies, businesses often experience commercial disputes. Alternative dispute resolution methods work particularly well for these types of commercial business disputes:
• Breach of contract
• Severance packages
• Commercial leases
• Shareholder disputes
• Noncomplete clauses
• UCC disputes
• Business relationship interferences
Interest-based negotiation tactics
Conciliation and mediation work well for commercial business disputes because they utilize interest-based negotiation. This process starts with the assumption that both parties can obtain a mutual gain out of the potential resolution. The steps involved in interest-based negotiation include:
• Identifying each side’s interests
• Defining the disputes between sides
• Coming up with potential resolution options
• Evaluating each potential options until an agreement is made
Allow your company to benefit
Traditional trial litigation occurs because companies believe it will offer the greatest benefits to their businesses. However, allowing alternatives to courtroom trials to resolve your disputes may provide much greater benefits for your company in the long term, while also preserving your company’s interests.
