How to Prepare for Business Mediation or Arbitration

An increasing number of businesses use mediation and arbitration to resolve disputes. Both mediation and arbitration are forms of alternative dispute resolution, which are non-litigation options for resolving disagreements.

Arbitration uses a neutral, impartial third party to hear both sides and issue a decision, which can be binding or non-binding. While similar to a traditional court hearing, arbitration is generally private and often has more flexible rules.

Mediation also uses a neutral, impartial third party. The difference is that the third party doesn’t issue a decision but instead acts as a guide and referee to help the two sides reach an agreement.

Preparing for Arbitration

Preparation is key for both mediation and arbitration. While there are some similarities in preparation, understanding the differences between the two can make the process easier to navigate.

For arbitration, a party’s legal team should ensure they know the arbitration agreement and rules and be willing to answer questions about the process.

Gathering evidence and preparing witnesses is key, and some attorneys may suggest a mock arbitration session to help clients understand the process and make the actual arbitration less intimidating.

Preparing for Mediation

Compared to arbitration and traditional litigation, mediation is less adversarial and more about finding common ground. The parties, rather than a neutral third party, decide on a solution, which means that understanding each side’s goals and what matters to each side is crucial.

Mediation often covers a range of subjects, and attorneys should work with clients to determine what issues or goals are the most important. If a client has certain issues or topics that are nonnegotiable, they should work with their legal team to find other areas where compromise is possible.

Open communication and a willingness to reach a compromise are the keys to successful mediation. Listening, understanding each side’s perspective, and being willing to have a conversation are all helpful during the mediation process.

Hire an Experienced Texas Business Lawyer

If you’re involved in a business dispute, the attorneys at Manfred Law can help. Call us at 713-547-5460 or contact us online to schedule your consultation.