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When mediation for a commercial dispute fails, what comes next?

On Behalf of | Jul 24, 2023 | Civil Litigation

Mediation is often a beneficial approach when the owner or management of a commercial operation hopes to resolve a dispute amicably. Perhaps they want to keep the details of a challenging situation out of the press or they hope to preserve a valuable working relationship with a party that has breached the terms of a contract. These are just a few of the reasons why those in charge of a company may prefer the confidential, negotiations-based approach to a dispute that mediation affords. 

Unfortunately, entering into mediation is not a guarantee that a dispute will be resolved amicably. Sometimes, one party simply cannot – or will not – agree to the terms that the other party involved in a dispute has proposed during mediation and a stalemate occurs. Other times, evidence of bad faith or other unacceptable conduct is uncovered during mediation and reaching a mutual agreement becomes virtually impossible. When mediation fails, litigation may be the only way forward.

Taking the matter to court

Litigation is often seen as a last-resort option because it can be a time-intensive, expensive and contentious endeavor. However, litigation can also serve as a way to secure much-deserved justice when other options – such as negotiation or mediation – have failed. 

If you have concerns about the ins and outs of litigation, it is better to voice these concerns to your attorney than it would be to simply accept an unjust result at the negotiating table or in a mediation setting because you want to avoid litigation at all costs. 

Sometimes, taking a commercial dispute to court is the best way forward. As every case is unique, you may not know for sure whether it is an opportunity worth embracing if and until you’ve tried your best to mediate your issues and those efforts have not succeeded.