Mediating Conflicts Between Business Partners
One of the most common types of business disputes I have encountered in my work as a business lawyer is a dispute between business founders or partners.
Often this is caused by some kind of flaw in their founder agreements; such as a partnership agreement, operating agreement, or corporate bylaws. These document were either completely not drafted, were drafted poorly, or aren’t being followed or enforced.
Now there is some problem with the business operation but no contract to direct them on a resolution. Or the business is dissolving and there is no agreement on how to divide assets or liabilities.
Why Is Mediation Better for Solving Business Partner Conflicts?
Especially where one or both parties plan on continuing the business, mediation might be the preferred way to resolve the dispute. A Court will simply liquidate assets and distribute funds; it won’t try to reorganize the business or change the business model, or try to save the business in any way. Mediation is flexible and can help the parties come to a solution that meets both their needs and perhaps allows the business to continue operating.