If you have ever been involved in commercial disputes the concept of “gridlock” and its ability bring negotiations to click more details a grinding halt is well-known. Perhaps the visualization of Dr. Seuss’s North-Going Zax and the South-Going Zax meeting face neither turning nor retreating. When it appears that an impasse is reached the other party, mediation can assist with drawing the matter to a close and finally resolving your commercial dispute.

In certain cases, the representatives of corporate parties in a mediation meeting may not even be the people involved directly in the dispute. They are likely unfamiliar with both the facts and the background of the dispute, making it difficult to get to the root of the issue. These challenges are compounded when there are evidential issues that may cause parties to be unwilling to accept or offer settlement proposals. For these situations, parties can be asked to disclose evidence and facts related to the mediation. Perhaps setting up of a mutually developed data pool will be of great assistance before the mediations begins. The data will eventually be entered into evidence. Doing this early can save time and money. If there is no agreement as to evidence then, the mediation can be recessed until the rules of court have allowed for the discovery process and exchange of witness statements. To proceed without facts would seem a waste of time.

Another common issue in commercial disputes is that parties are not fully aware of the strength and weaknesses of their own position. This should encourage interagency communication as parties become deeply attached to their possibly flawed perception of legal rights. For example, corporate parties might not consider the impact that litigation could have on the reputation of their company, market place good will, and the real cost if the dispute continues. This can be overcome by preparation of the negotiators by all departments involved in the dispute and legal representative. Working with legal professionals that are informed that the goal is settlement can give entrenched parties an important corporate goal so as to allow more fallibility.

An additional challenge in mediation is when parties attending mediation do not have settlement authority. This usually happens in commercial disputes with large banks or multi-national corporations where a person has not been appointed to get the matter settled meet about pre-approved settlement guidelines. All the negotiator is told is get the best deal possible. The operative word may be to make a deal but without settlement authority getting a deal may not be possible. There are some courts that insist parties to commit to a settlement conference with authority. Failure to do so may be read as bad faith. To paraphrase ZAXs, people will say “I am not going to show you mine if you will not show me yours.”

One final challenge for mediation is when corporate parties have financial difficulties in complying with settlement terms. Rule: Never promise that which has never been done before. The party setting the payment schedule must be certain that what it promised will be done. The party setting the schedule has an extra duty to make sure the deadlines can actually be met. An experienced mediator can help by exploring the financial capacity of each party with regard to the settlement proposal. Allowing parties to click great website achieve consensus on some basic settlement terms first will be beneficial before structuring a payment plan. When parties can come to some basic forms of agreement, navigating more complex terms and requirements is easier. Mediation is a valuable tool for solving many types of commercial disputes, and considering gridlock issues in advance can help to eliminate them during the course of a successful mediation.

Be Sociable, Share!
Share →

Leave a Reply