Mediation in Business Disputes

Mediation is a form of alternative dispute resolution that involves parties in conflict sitting
down with a trained mediator to address and resolve the critical issues at hand. Mediation is
growing as a way to address disputes in many different fields, including ADA and EEOC complaints,
employment issues, contract disputes, and union negotiations. 

The settlement process in mediation is managed by a neutral third party trained in mediation. The
goal of this process is to bring the parties together to identify vital issues and to communicate
together to generate solutions. In the business world, mediation is an informal way to clear up
issues without having to engage in complex litigation. 

For commercial businesses and parties in disputes, mediation offers many benefits. Compared to
litigation, mediation provides a forum that tends to resolve disputes much more quickly. As a
result, it is less expensive for both parties since less time is required to meet and discuss the
pertinent issues. Scheduling is also much easier since the meetings can be set up around the
availability of the disputing parties and the mediator. Parties can work together to discuss and
create their own solutions, providing more flexibility when compared with traditional litigation
where a judge makes a final determination. This working together can limit further hostility and
may even set the tone for a positive and civil relationship post-dispute. 

A business dispute mediator needs to communicate with the parties before they meet together in
order to understand the dispute. What the mediator learns will influence how to conduct the
mediation. It may be counterproductive to have counsel expound the positions of the parties with
everyone in the room. At least the parties should all meet in order to execute a confidentiality
agreement and to enable both sides to confirm that representatives with authority to decide on a
resolution are in attendance or at worst available by telephone.

After the initial joint meeting, the mediator will meet with the parties separately to explore how
resolution might be reached. Confidentiality of the communications in mediation is an essential
part of the process. It protects the parties and enables them to speak frankly about their
interests as distinguished from their legal position if the dispute must be resolved by a judge or
an arbitrator.

Not all disputes can be resolved in mediation, but the involvement of a skilled mediator will
improve the prospects for a peaceful and efficient resolution.
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Met Wilson is a seasoned mediator and arbitrator practicing in Portland, Oregon on a wide variety
of cases including commercial disputes, claims against broker-dealers, consumer claims, real
property disputes, franchise disputes, employee claims, construction claims, contract claims,
insurance coverage disputes and business torts. For expert assistance in any of these areas,
please call Met Wilson at 503-972-5090 or visit http://wilsonadr.com/

Posted by J. Randall Frier http://jrandallfrier.com/

Chapter 11's Unexpected Silver Lining

When people contemplate filing for bankruptcy, "Chapter 11" is almost always considered a last
resort. Its reputation as the bringer of an awful fate has solidified its near mythical status on
how most people think.  Bankruptcy experts and other finance professionals have done minimally in
reducing this stigma. They have historically endorsed Chapter 11 as a refuge you seek when there
are simply no other answers. It's no secret that undesirable results await entities - especially
individuals - who file for it. The most obvious ones are loss of assets, loss of control over your
finances, and a reduction on your quality of life. These reasons alone are enough to scare people
and businesses into avoiding Chapter 11 until they are certain that they have no other option. 

As a result, many people are unaware that on the right circumstances, Chapter 11 proves to be
beneficial, especially when employed sooner rather than later. The optimum situation for a
business to file for Chapter 11 is when the business still has flexibility and credit that would
normally allow it to put off bankruptcy or avoid it altogether. 

When a business is seeking to sell itself or is planning to merge with another business, most
Chapter 11 advocates agree that this is a scenario worthy of Chapter 11 consideration. In most of
these situations, the prospective partner is interested in a particular asset of the first
business. This can range from real or intellectual assets to a thriving customer base. Whatever
the interest is, it is a fact that if the first business has obtained a large amount of debt, the
acquiring entity could be put off by it. If a company suffers through this dilemma, the smartest
strategy it can implement is declaring Chapter 11, even if its financial status is not dire enough
to require it.  

The rationale behind this clever business maneuver is to free up cash and cover operating costs
more efficiently by restructuring the company's debt and payment plans; thus, making it more
attractive to the acquiring or partnering entity. This technique helps in asserting the first
business' ability to service its debt while still functioning as a business. The process does not
merit further business scrutiny because the debt was always there and known to the potential
partner.  Instead of making the first business look worse, a preemptive Chapter 11 filing improves
its outlook and makes it more attractive. 

When dealing with any legal or financial mechanism, especially with negatively-viewed strategies,
one-dimensional thinking should be avoided because most of them have an unexpected silver lining
that could potentially save your business.
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If you can no longer pay your creditors, you may choose to file for bankruptcy. Get a fresh start
- by liquidating assets to pay your debts or by creating a repayment plan. Based in Oakland,
California, Claude D. Ames Law Offices can provide the legal representation that you need for
Chapter 7 and Chapter 11 bankruptcy. Please call (510) 652-1300 or visit his website:
http://www.claudeamesarbmed.com


Posted by J. Randall Frier http://jrandallfrier.com/