Top Reasons to Choose Mediation for Partnership Disputes

Partnership disputes can arise whenever people work together in a business that they co-own. While there are steps you can take to try to minimize the chances of a disagreement arising, like creating a comprehensive partnership agreement and employment contracts when you begin operations, it is inevitable that sometimes people will not see eye-to-eye.

When a partnership dispute arises, it is imperative to try to work together for the good of the business.  You should try to resolve disagreements on your own, but when you cannot do so, mediation is often going to be the best approach for you to take. The Southern California partnership disputes lawyers at Brown & Charbonneau, LLP can help you to determine if mediation is an effective way to resolve your disagreement and can represent you as you go through the mediation process.

Why Mediation May be a Good Way to Resolve Partnership Disputes

The Equal Opportunity Employment Commission defines mediation as: “an informal and confidential way for people to resolve disputes with the help of a neutral mediator who is trained to help people discuss their differences.”

Mediation is an alternative to litigating a disagreement, and it is an alternative to other methods of alternative dispute resolution, such as arbitration. It can be the best approach when you and your business partners are involved in a conflict and cannot come to a consensus on your own.

Mediation may be the best approach to take because:

• Mediation is not adversarial. You and your business partners are going to have to continue working together as long as you want operations to continue on your company. You do not want to have an adversarial relationship going forward, as this could make it difficult or impossible to run your business effectively. While litigation pits you and your business partner against each other with winners and losers, mediation does not do this. Instead, it is a cooperative process to find solutions.
• Mediation allows for better solutions. The mediation process involves you and your partner working together to come to a consensus solution. The mediator facilitates this process. The mediator does not make decisions for you and is not going to force a decision on you like a judge would if you had to litigate the case. As a result, with the help of the mediator, you and your partner can communicate more effectively to come to a solution that makes everyone happy. This solution is often going to be better than one imposed by a judge or outsider would be, since you and your partner know the business best and are the most invested in your company’s success.
• Mediation facilitates effective problem solving. A mediator helps to facilitate effective communication between you and your partner. While you may have difficulty articulating your positions on your own and looking for areas of consensus, a mediator is trained to help people find ways to resolve points of contention that leave all parties better off.
• Mediation helps keep the dispute private. When litigation occurs, private business information can become a matter of public record. When you work with a mediator, you can keep the existence and subject of the dispute private so you do not hurt your brand or undermine confidence in your business operations.
• Mediation maintains your partnership relationship. A decision is made in mediation to resolve the dispute only if both partners agree. Since there are no winners or losers, there is no lingering resentment or ongoing disagreement with the resolution that could affect your business relationship going forward.  This means it is easier for you and your partner to continue working effectively together to ensure successful business operations.

These are just a few of the many reasons why mediation is often the best approach when you are involved in any type of partnership dispute. Mediation does, however, require cooperation- so if your partner is not willing to make a good faith effort, then mediation would be a waste of time.

How an Irvine Partnership Disputes Lawyer Can Help

The partnership disputes lawyers at Brown & Charbonneau, LLP can provide you with assistance both in assessing whether mediation is the best method of dispute resolution as well as in going through the mediation process. To learn more about how our attorneys can assist you in resolving your partnership disagreements, give us a call at  866-237-8129 or contact us online.

We can also provide representation if mediation is not effective and you are forced to turn to litigation. Whatever your situation, our goal is to help you get the best possible outcome for your business. Call today to learn more.