Disputes are a common occurrence in business transactions, and when they occur, they can result in lengthy legal battles that are time-consuming and expensive. Fortunately, there are alternative dispute resolution methods such as arbitration and mediation that can simplify the resolution process. These methods are particularly effective because they allow both parties to present their arguments and find a middle ground that’s amicable.
With that said, this article explores the best practices for arbitration and mediation.
Proactive Communication
Like any other relationship, communication is key to a successful arbitration and mediation session. Agreeing on the terms of engagement beforehand helps to create a conducive environment for dialogue. The parties should communicate prior to the session to agree on the ground rules such as the time and venue of the meeting, who will be present, and the format of the discussions. This helps to avoid any potential misunderstandings that could derail the process.
Choose Expert Professionals
In arbitration and mediation, the resolution is based on the decision of a neutral third party. Therefore, it’s important to choose an arbitrator or mediator who’s well-equipped to handle the particular issue that’s being addressed. The professional should have a comprehensive understanding of the specific industry and be well-versed in the applicable regulations and laws. They should also have a proven track record of successful resolution of disputes.
Adhere to the Process
The arbitration and mediation process is designed to facilitate a mutually-agreed resolution. For this reason, it’s important to adhere to the process guided by the chosen neutral third party. This means that both parties should be open to compromising and find creative solutions that address the issue at the core of the dispute.
Confidentiality
In arbitration and mediation, confidentiality is key. The issues discussed during the session are strictly between the parties involved and should be kept confidential. This is essential for maintaining the integrity of the process and preserving the relationship between the parties.
Document Everything
It’s vital to document everything that’s discussed during the arbitration and mediation sessions. This includes the agenda, evidence presented, conclusions reached, and any decisions made. This documentation serves as evidence of the agreement and can help to prevent disputes from arising in the future.
Follow Through
After the arbitration and mediation sessions, it’s important to follow through with any agreements reached. This includes implementing the decisions reached and ensuring that grievances are addressed. By doing so, the parties can foster a better relationship as they move forward.
Conclusion
Arbitration and mediation are essential tools for resolving disputes in a time-efficient and cost-effective manner. By adhering to the best practices discussed above, parties can come to mutually-agreeable solutions while preserving their relationship. It’s important to remember that a successful dispute resolution process is a partnership between the parties involved and the neutral third party. Therefore, it’s essential to choose an arbitrator or mediator with experience and expertise in the particular industry or field you’re addressing.
