How is Mediation Different for a Small Business & a Large Corporation?
Mediation is one of the most common tactics used to resolve differences and disputes between two or more parties. Mediation is most often used in the business world, helping companies solve issues between employers and employees, companies and vendors, companies and independent contractors, companies, and customers and even between business partners. Mediation, although similar in nature as to how it is handled, can differ when it is being conducted for a small business compared to a large corporation.
Mediation for Small Businesses
The sad fact of the matter is that small business mediation could spell the end of a small business. Why? The resolution reached between the small business and the other party could wind up causing the business to close its doors. How? The business’ insurance company might drop it after paying out a settlement, making it more difficult for the company to find an insurer in the future. Or, the business might have to pay the settlement out-of-pocket, using all of the available funds.
Small business dispute resolution, while very helpful for some businesses, can signal the end of doing business for others. Despite knowing this, mediation is still the preferred method of dispute resolution compared to litigation in almost all scenarios. Litigation is costly, lengthy and puts the resolution in the hands of a judge and not you and the other party.
How does commercial mediation work for large corporations?
Since these companies usually have million-dollar operating budgets and million-dollar incomes, many of them can simply shrug off the idea of going to mediation. Some might simply settle an issue with an employee, customer, vendor or independent contractor without even going to mediation because they have the money to do so.
Similarities in Mediation for Small and Large Businesses
There are similarities in mediation for small and large businesses and they include the following:
- Mediator oversees the meetings
- Mediator does not make a decision
- Mediator guides the two parties towards a settlement
- The agreement is binding and can be enforced by a court
- If mediation ends without a resolution, it can move to litigation
- Avoid high court fees
- Attend with the help of an attorney
- Can be resolved in as little as a couple of hours
- Helps avoid resentment and hostility caused by filing a lawsuit
- More likely to reach a resolution using mediation
As you can see from the list above, it is advantageous for your business to attend mediation and use commercial mediation services instead of going to court. You will spend less money in court fees, will resolve the issue quickly, and will be able to keep your relationships intact with whomever it is sitting across the table from you in mediation.
Is Your Business in Need of Mediation Services? Call Shapiro Mediation Services Today
Does your small business require mediation services in Massachusetts? Are you concerned that going to litigation will cost too much and take up too much time? If so, you need to speak to the experienced mediators at Shapiro Mediation about your situation. Call us today at (339) 298-7733 or complete our online contact form to schedule your free consultation.