Mediation resolves disputes outside of court confidentially and less costly

By Michael Lodge on March 07, 2024


Michael Lodge - The Business Advisor / Mediator - 424.542.7299 - www.lodge-co.com

Mediation and arbitration clauses are essential components of any business contract, offering a plethora of benefits to all parties involved. By including these clauses, companies can avoid the costly and time-consuming process of going to court to resolve disputes. Instead, they can opt for mediation or arbitration, which are often quicker, more cost-effective, and less stressful alternatives to litigation.

One of the key advantages of including a mediation and arbitration clause in a contract is the ability to maintain confidentiality. Unlike court proceedings, which are a matter of public record, mediation and arbitration sessions are private and confidential. This can be particularly important for businesses seeking to protect sensitive information or proprietary details that may be disclosed during the dispute resolution process.

Furthermore, mediation provides a more collaborative and flexible approach to resolving conflicts compared to arbitration. Parties have the opportunity to work together with a neutral mediator to find mutually acceptable solutions that address their interests and concerns. With an impressive 85% resolution rate, mediation is a highly effective tool for reaching agreements and maintaining positive business relationships. Ultimately, the inclusion of mediation and arbitration clauses in contracts can help businesses mitigate risks, streamline dispute resolution processes, and foster a stronger foundation for successful business partnerships.

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