If you own a business, it is almost inevitable that you will face a business contract dispute. Contracts are the lifeblood of most business operations.
Businesses regularly contract with partners, vendors, customers, and other companies. Typically, the parties uphold the agreements. But there are times when business disputes arise. Business contract disputes that go to court are often costly and time-consuming. They can also be publicly humiliating or reputation-ending.
An alternative dispute resolution process like business contract mediation in Texas may be a way to avoid going to court. It may also save you time and money and salvage the relationship with the entity you are in conflict with. Below, we discuss mediation and how to file for mediation in Texas.
What Is Mediation?
In Texas, mediation is a forum where parties can bring their business dispute before a neutral third-party mediator. The mediator does not impose their own judgment on the issues the parties are facing. They facilitate communication and promote reconciliation, settlement, and understanding. The goal is to help parties resolve their disputes outside the court system.
Benefits of Business Contract Dispute Mediation
Mediation can often be a less formal way to resolve disputes. This alternative dispute resolution model can offer many benefits, such as:
- Cost savings—mediation is typically less expensive than traditional litigation;
- Faster—because there is less time in court and less back and forth with attorneys, mediation is often a shorter process and may be able to resolve a dispute in a few sessions;
- Confidential—mediation is a confidential process where all parties must sign a confidentiality agreement;
- Voluntary—mediation is a voluntary process that both parties must agree to participate in, and either party can end the process at any time;
- Collaborative—mediation takes a collaborative approach to resolving disputes and expects the parties to work together to come up with a mutually beneficial solution;
- Improved communication—with the help of the mediator, mediation often enhances the communication between the parties and lets them openly discuss their perspectives in a neutral setting;
- Preserves relationships—due to its collaborative nature, mediation can help preserve and mend relationships between parties;
- Long-lasting agreements—agreements created through mediation are often more durable because they encompass the views of both parties and are tailored to their needs over time.
Texas has a policy of encouraging the peaceable resolution of disputes through mediation.
How to File for Mediation for Business Contract Disputes in Texas
Consult an Attorney
If you are in a dispute with a business partner, vendor, or other entity, consult with one of Massingill’s Texas business lawyers. An attorney can review the facts of your case, help you understand your legal rights, and determine the best dispute resolution avenue. Sometimes, alternative dispute resolution models like mediation may be the best route. Litigation may be the best route in other cases.
Mediation is often a great way to resolve a business dispute before going to court. It works best when both parties are willing to communicate and collaborate without fear or pressure. However, mediation may not be the best conflict resolution model if the parties are abusive or threatening.
Draft and Send a Mediation Request Letter
If you and your attorney have decided that your situation is appropriate for business contract mediation in Texas, have your attorney draft a letter to the other party requesting mediation.
Select a Mediator
Once the other party has agreed to mediate, you must select a mutually agreeable, qualified mediator. Mediators can be attorneys, former judges, or others trained in mediation and alternative dispute resolution techniques.
You want to select a mediator with experience in your area of concern. Hiring a mediator with business contract dispute experience will ensure they can manage your dispute.
Your attorney or the other party’s attorney may know an experienced and reliable mediator to use. In addition, the Texas State Law Library has a list of dispute resolution centers that offer mediation services throughout the state.
Filing for Mediation If Your Case Is Already in Court
If your case is already in court and you want to mediate all or some of the issues, you may need to file a motion for mediation. The motion acts as a request to the court to divert your dispute out of litigation. This process may vary depending on the county and court your case is in.
At Massingill, our experienced Texas business lawyers understand the nuances of requesting alternative dispute resolution methods. They can help you prepare the necessary documents and file the required motion.
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Prepare for Mediation
Once you have selected a mediator, you and your attorney can prepare for mediation. Discuss your goals, desired outcomes, and what you are willing and unwilling to compromise with your attorney.
You can also draft an opening statement and bring all relevant materials to help communicate your side of the issue and what you want. Be prepared to communicate openly and with a collaborative spirit to come to a mutually agreeable and creative solution to the dispute.
Massingill can help you navigate the mediation process if you are facing a business contract dispute. Since 2015, our experienced Texas business lawyers have helped hundreds of clients successfully navigate contract disputes through alternative dispute models like mediation. We know the top mediators for various industries throughout Texas.
Our team will review your case, help select the mediator best suited for you, draft necessary letters or motions for mediation, and serve as your counsel throughout the process. We will tailor the mediation strategy to your needs and protect your business interests.
Our firm has received nearly 200 five-star reviews from clients for our professionalism and results-driven service. Contact Massingill today to learn how we can help you successfully mediate your business contract dispute.
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Joshua Massingill
Joshua Massingill is an attorney practicing in Austin, Texas. He serves on the Texas State Bar’s Law Practice Management Committee, the Leander Educational Excellence Foundation (LEEF) Board of Directors, and the Success-Werx Board of Advisors. He mentors young entrepreneurs in Leander ISD’s INCubatorEDU program and is active in his church.
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