The idea of two people coming together to form an alliance for a well-defined purpose and then breaking apart after a falling out is not alien to most. This can apply to two friends, this can apply to a married couple and this can apply to two (or more) business partners who find that they cannot get themselves to agree on key issues. A partnership dispute, if escalated, can cause serious damage to the business they once mutually dedicated themselves to. If you, as a business partner, attempt to resolve a dispute in order to get back together as dedicated partners or to end things on relatively decent terms with minimal damage to your venture, seeking effective legal advice can assist you in securing the right solution.
Why Mediation?
Mediation is an alternative dispute resolution method that is widely used as an alternative to litigation, after preliminary negotiations have been unsuccessful. While some partnership disputes do end up in court, this may not need to occur in your case. Mediation can be an effective way to come to a mutually amicable solution.
Some may ask “But what is mediation?” Mediation is simply a type of negotiation discussion that is assisted by a neutral individual who can offer insight and assistance in solving the dispute. That neutral individual acts as the mediator and attempts to understand all views and assist with discussions of a solution. The parties are not obligated to accept the mediator’s assessments or suggestions and retain the ability to decide if they accept any of the resolution proposals.
The Benefits of Mediation
There are several benefits to trying mediation in an effort to avoid litigation.
Confidentiality
Mediation and other alternative dispute resolution methods allow parties in a dispute to keep their matters confidential. Consider an instance where your partnership dispute goes to court. You may be making a public spectacle of your dispute, affecting how your clients and stakeholders view your business, without sensitive information remaining confidential.
Amicable Solution
Another benefit of mediation (and other alternative dispute resolution methods) is the fact that the outcome seldom results in a ‘winner takes all’ situation, where one party bears the brunt of a defeat while the other enjoys victory. A successful mediation typically results a negotiated solution, where each party compromises to reach a mutually agreeable solution, potentially lessening long term strain on relationships.
Saving Money
Court battles are generally expensive and inherently time-consuming. Mediation is often considerably cheaper and considerably less time-consuming.
Do you want to learn more about other alternative dispute resolution methods to help you resolve your partnership dispute? Our law firm in Alberta can help you with that. We invite you to contact us to learn more.