Benefits of Mediating Business Law Disputes

Mediation for business law dispute

New York business lawsuits don’t always end in trial. In fact, most cases are settled outside of court. A process known as mediation is responsible for many of these settlements. Whether you are the plaintiff or defendant in a case, it’s important to know the advantages of mediation.

An experienced New York business law attorney can represent you during this process. Here, we explain more about how mediation can successfully resolve litigation.

Call Rosenbaum & Taylor at (914) 326-2660 for a free consultation.

What Is Mediation?

Mediation is a procedure in which parties to a lawsuit discuss the case with the guidance of a mediator. Mediation takes place outside of court, typically in a lawyer’s office. The objective is to try to have both parties compromise and settle the lawsuit on terms they can both agree with.

A mediator is assigned to oversee the process. This individual is neutral and cannot decide the outcome of a case the way a judge can. Instead, the mediator’s goal is to facilitate productive discussions so the parties can hopefully resolve their issues. The mediator will explain to both parties the risks of going to trial versus the benefits of settling. He or she will also evaluate settlement proposals and sometimes make recommendations to the parties’ lawyers.

Discussions, including offers to settle, are protected by confidentiality in the event mediation fails and a trial becomes necessary. A New York business lawyer can represent you during mediation. The lawyer’s primary role is to help you decide whether to settle or try the case. The attorney can also explain the legal consequences of settlement proposals.

What Are the Benefits of Mediation?

As opposed to going to trial, mediation can reap substantial benefits for plaintiffs and defendants alike. Here are some examples.

1. Saving Time and Money

By far, mediation is preferred to trying a case because of the potential time and money savings. A trial will take more time to complete and may be appealed, which will further delay resolution. Trials also generally cost more in lawyer and court fees. Plus, a jury could award damages that are lower or higher than you could have settled for.

Mediation Word In Wooden Cube

2. Confidentiality

Since mediation discussions are protected by the confidentiality rule, offers to settle can’t later be used against a party. Suppose you offer $5 million to settle a lawsuit during mediation, and the defendant rejects it. At trial, you can oppose paying the defendant anything at all. The defendant generally can’t bring up the fact that you offered $5 million to settle during mediation.

3. Informal

Mediation typically occurs in a lawyer’s office, and the rules of court are relaxed. This informal process encourages the parties to discuss issues candidly and honestly. It removes the adversarial atmosphere of the courtroom and helps advance positive discussions.

4. Creative Solutions

Parties to mediation are free to craft just about any terms of settlement they want. These terms can be unique to the facts and parties involved and more creative than what a judge would likely order. There are limits, of course, to what the parties can agree to. Ask an experienced New York business lawyer for more details.

5. Facilitates Productive Business Relationships

Parties to a lawsuit are less likely to work with each other in the future if a lawsuit goes to trial. But both sides have to mutually agree to a mediated settlement. That means there’s more likelihood of the parties working together in the future. Mediation can therefore preserve and improve critical business relationships.

Representing New York Businesses in Successful Mediation

Having a knowledgeable business attorney represent you in mediation is critical. The mediator cannot advocate for your legal interests because he or she must be neutral. But we can help. We are experienced New York business lawyers who can assist with every aspect of mediation.

We can also help you achieve the best possible outcome or represent you in court if mediation is unsuccessful. Give Rosenbaum & Taylor a call today at (914) 326-2660 to get started.

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