In some cases, litigation is necessary after a breached contract. For example, perhaps a supplier is two weeks late with a shipment. They technically do deliver it eventually, but the delay causes the company that ordered it to suffer significant financial trouble. Their own production efforts can’t continue until the supplies arrive, so everything falls behind schedule.
That company has then suffered financial damage, and it may be necessary to sue the supplier to get compensation for those losses. The delay could’ve cost the second company in terms of production, sales, and even reputation if customers were frustrated that their own orders were also delayed. But is it possible to use mediation to avoid going to court?
A solution may be reached through mediation efforts
Yes, you can use mediation in a situation like this. It simply means that both parties sit down with a third-party neutral and discuss what they want to achieve moving forward. In many cases, this can help them find a solution or a compromise that both sides are happy about. They don’t need to put the decision in the hands of a judge.
Not only does mediation give the parties more control over the outcome, but it can also be a much faster solution. There are many steps to take when filing a court case, attending court dates and hearings, presenting evidence and much else. If the court system is simply overwhelmed with similar cases, there could be a long delay before the case even begins. But mediation is often a faster and more cost-effective solution so that the contract breach can be addressed, and the whole situation can be put into the rearview mirror.
It’s important for business owners to remember that litigation is not their only option, and that mediation and other types of alternative dispute resolution tactics may be useful. It can help to work with an experienced law firm.