Commercial real estate disputes can quickly become complicated and time-consuming conflicts. When a dispute threatens to stretch into a lengthy case, mediation might be a suitable alternative for finding viable solutions without as much risk.
The most common disputes
For commercial real estate, most conflicts involve a breach of contract, failed performance or construction goals, boundary issues, insurance claims, fraud, and those issues related to a property transaction. Some cases, such as those involving fraud or circumstances that could warrant punitive damages, may be better suited to litigation. But if both parties are willing to discuss the terms of a potential resolution, mediation may be an excellent option. Here are some reaons why mediation can be advantageous to a commercial real estate dispute:
- Promoting expedient resolutions: The contentious and adversarial nature of litigation is a recipe for extensive court proceedings. Lengthy cases can incur substantial legal bills, creating more risk for each party in addition to the court’s decisions related to damages or other monetary actions. Regarding this, mediation is often more cost-efficient than litigation.
- Preserving business relationships: If the parties involved in a dispute want to maintain their working relationship, mediation provides a safe forum for discussion and the airing of grievances before collaborating towards a mutually agreed-upon resolution. Mediation is often non-binding, so if a civil argument devolves into some less productive, litigation could still be an available option.
- Keeping matters private: Mediation keeps the discussions between the parties involved private, and free from the public record (and any unwanted disclosures) of litigation.
Making the right decision for your business
There are so many possible disputes that could arise from a commercial real estate agreement, contract or transaction that it may be wise to circumvent extensive court proceedings whenever you can. Don’t let a small dispute destroy a working business relationship. Find an attorney with experience in commercial real estate mediation to see if there are amicable options for your dispute.