How Much Money Dose Mediation Save Small Businesses

There are a variety of benefits for companies that choose mediation over traditional litigation, but one of the most enticing benefits is the potential money saved. Instead of traditional litigation, companies can save money, time, and get better outcomes when working with an experienced mediator. Where traditional litigation can potentially take months or even years to resolve an issue in court, mediation can potentially handle an issue in a matter of weeks. The shortened timeline means fewer billable hours.

How Does Mediation For Businesses Work?

Business disputes can be fairly common for businesses. Regardless of the size of the business, it is normal for issues to arise between co-owners, businesses & clients, and businesses & vendors. When a dispute requires litigation, the traditional method of going to court requires each party to hire legal representation/counsel. The process can be extremely lengthy and is not private. Through discovery, lawyers may request access to financial records and other relevant information. One of the benefits of mediation is that the process is quicker and more private. Instead of going through the court, the parties meet with a mediator and work together on creating an outcome that is mutually beneficial. Because both parties are potentially working with a single mediator and the sessions are happening outside of court, the process can cost a fraction of what traditional litigation costs.

How Do Mediators Bill Their Clients?

Different mediators have different ways of charging their clients. In some cases, mediators charge per hour while others choose to charge fixed rates for their services. The price of a mediator may reflect the services that the mediator provides. For example, many mediators also have law degrees and are able to provide legal services along with mediation.

The Benefits of Business Mediation

Beyond saving money, individuals and businesses can garner many benefits from choosing to work with a mediator including:

  • Protect Confidentiality: One of the core benefits of mediation is that it is private. Court judgements are often available to the public which could hurt a company or individual’s reputation. By working with a mediator only the disputing parties are involved in the process.
  • Have Control: Unlike the court system, the final say in mediation belongs to the clients. While mediation does require individuals to compromise and work on an agreement, no final agreement can happen without your approval. This is much better than working through the court where it is entirely possible that you walk with nothing.
  • Save Time: For both employees and businesses, wasted time equates to wasted money. By streamlining the process of dispute resolution, mediators can help you get back to work quickly.
  • Maintain Relationships: By nature, mediation requires all parties to work collaboratively towards a solution that is mutually beneficial. And while it may be true that your business relationship or partnership is over, the bridge may be less burned so to speak. Traditional litigation on the other hand leads to outcomes where one side wins and the other loses. This type of outcome can permanently damage any working relationship.

Business Mediation in Worcester County

Deirdre Healy provides business mediation services to clients in Worcester county. If you have questions about a specific case, please contact our office. Understand that contact via our website, email or phone does not establish an attorney-client privilege.