What is Mediation?

Mediation is a voluntary and private way to resolve legal disputes outside of court. In mediation, a neutral third party (the mediator) helps both sides work toward resolving their problem.

The mediator doesn't make decisions like a judge would. Instead, they guide the conversation and help both sides find common ground.

How does mediation work?

You can mediate a dispute at any time. Before a lawsuit is filed, right before trial, or even after a trial is over. 

The process is pretty straightforward:

• Picking the Mediator: Sometimes a contract might spell out who the parties will use as a mediator. If not, the parties generally come to an agreement on who to use. That person is usually a retired judge or an experienced lawyer. 
• Preparation: The mediator may send you some guidelines for the mediation. These may include submitting a written explanation of your side of the dispute before the mediation begins. 
• Group Meeting: Many times the mediator will start with both sides in the same room. The mediator may introduce themselves, explain their role, and talk about expectations. They also may have each side briefly explain their side of the story. 
• Individual Meetings: The mediator will then speak with each side individually. They will go back and forth between the two sides and move the dispute forward toward resolution.

Remember—every mediator has their own style and approach. The process is flexible and can change based on what works best for your situation.

How long does mediation take?

Mediation is usually quick. It can take a few hours to a few days.

How long the mediation lasts depends on:

• The complexity of the dispute
• The number of parties involved 
• Each side’s willingness to compromise 

Compare that to a lawsuit from start to finish. Those can drag on for years!

Why it’s important

Mediation has some big advantages for small business owners:

1. Saves Money: Much cheaper than taking a lawsuit to trial
2. Saves Time: Usually resolves things quickly
3. Keeps Control: You decide the outcome, not a judge or jury
4. Stays Private: Mediations are confidential
5. Not Binding: If it doesn’t work you can still litigate

Also, many contracts have sections that require the parties to try mediation before filing a lawsuit.

What to expect

If you are considering mediating a dispute, here are some things to keep in mind:

• It's informal - no judge, no courthouse
• Everything stays confidential
• Come prepared to compromise
• Listen to the other side
• Keep an open mind
• Be clear about what you want
• Think about creative solutions

If you're going to mediate a business problem, talk to a business attorney. 

They understand the process and can help guide you toward an acceptable resolution.

After all, getting professional help early can make the difference between a good settlement and a missed opportunity.

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Disclaimer: The information contained in this article has been prepared by Small Business Legal Solutions LLC for general informational purposes only. Nothing in this article is intended to constitute legal advice on any subject matter. The materials in this article are not intended to and do not create an attorney-client relationship. Do not act or refrain to act based on any information contained in this article  without first personally consulting with an attorney. Every circumstance is different and must be judged on its own merits.