NFIB

Stay Out of Court: Use Mediation in Business Conflicts
04/ 24/ 2002

by Tamara Holmes

Things have been running smoothly with your small business when you suddenly find yourself faced with a lawsuit. If you think your only option is to find a good lawyer, think again. Mediation, a method of resolving conflicts without going through the legal system, may be the solution you're looking for.

Mediation is a process in which two parties resolve their conflict with the help of a neutral third party.

"Sometimes people are so caught up in how they think the situation is that they need someone else to help them see more clearly," says Ayoka Campbell, a Maryland-based mediator.

But don't think you can use a colleague or business associate as a mediator. An extensive training program in such skills as conflict resolution is required, though the amount of training necessary varies from state to state. Campbell had to complete 40 hours to become a licensed mediator in the state of Maryland.

While mediation can help keep some cases out of court, it can be used for non-legal disputes, such as community conflicts and employee disagreements as well.

The process can be particularly helpful to small businesses.

"A small business owner may not have an attorney on site or may not want the bad publicity," says Campbell. "With mediation, there may be a way that the parties can settle it, whether it's via a payment or a simple letter of apology."

Once two parties agree to go to a mediator, a date is set for everyone involved to meet. Before the meeting, the mediator typically doesn't know much more about the case than can be given in a brief summary. The mediator will meet with each party separately to hear both sides of the dispute, and then all parties will come together to try to come up with a resolution.

While the mediator will tend to ask leading questions to get the parties thinking, he or she doesn't aim to come up with a resolution. Rather, it's preferable for the conflicting parties to come up with a solution to the problem that works for both of them.

A session will tend to last a few hours, typically about four. If a resolution has not been reached by the end of a session, another one might be set up to try to continue negotiations. If all else fails, court might be the only other option. But since both parties must be willing to look for a compromise in the first place in order to agree to see a mediator, Campbell says there is a good chance that the parties will be able to work the problem out.

There's a clear benefit to resolving a conflict through mediation rather than through the legal system, says Campbell, who is also a lawyer.

"When a case goes to trial, there's a clear winner and a clear loser," Campbell says. "With mediation, everyone should win."

Mediators set their own fees, which can cost upwards of $100 per hour, depending upon the scope of the case.

If you're looking for a mediator, a good place to start is the Web site www.mediate.com. There, you can learn about some of the instances in which mediation can be helpful and locate a mediator that practices near you.

Small Business Sound Off
Does this story hit home?  Share your story with us