LinkedIn Pulse: The Pandemic Shows Why Mandatory Mediation May Be the Future for Business Disputes

The coronavirus pandemic has been a stress test on the American legal system, shutting down courthouses, forcing judges to postpone long-standing trials and pushing lawyer-client meetings onto Zoom calls.

The results have been clear: traditional legal routes of resolving business partnership disputes are simply too difficult and costly to continue during the pandemic.

Fortunately, going to court is not the only option. During the pandemic, many business owners have taken advantage of alternative dispute resolution methods such as mediation, and now that they’ve seen it in action, that growth will likely continue in the future.

Traditionally mediation has been a voluntary process involving a third-party neutral who helps the parties analyze the strengths and weaknesses of their case and facilitate discussion in an attempt to resolve their dispute.

Judges have long promoted mediation as an efficient and effective way to resolve business disputes. Unlike a typical court case, mediation allows for complex civil disputes to be streamlined, as the mediator zeroes in on key factual and legal issues and steers the parties away from potential trouble spots that may be hindering a resolution.

In many courts, some type of mediation of business disputes is offered for parties to consider while they await trial, and it’s long been used by those who grew impatient. As cases have dragged on during the pandemic, it’s become a lot more popular.

But in those cases mediation was voluntary. With the court system still facing restrictions and a growing backlog, it’s possible that mandatory mediation will become the norm in many areas and require parties to participate in an alternative dispute resolution process just before or after filing a lawsuit.

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Thomas Law PLC Attorney, Margeaux Thomas, joins Mike Whelan of Law Insider for the latest episode of Contract Teardown. Contract Teardown is where legal experts teardown contracts from some of the most well-known companies and high-profile executives around the world.

In this episode, Margeaux breaks down the Amazon Flex Independent Contractor Agreement’s arbitration clause. This is a hot subject right now as a case disputing this clause is likely to appear before the Supreme Court. Margeaux points out the presence of conspicuous language, the lack of clear jurisdiction, and a drafting attorney’s duty to make sure parties signing these agreements are well-informed. There’s a lot riding on how you draft the arbitration clause, so let’s tear it down.

Check out the latest episode here:

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Being a small business owner means taking on several jobs at once by being your own chief executive, accountant, human resources manager and even lawyer.

That can lead to shortcuts, as entrepreneurs focus on their strengths and make do in the areas where they aren’t as knowledgeable.

As a business contract lawyer, I’ve seen the results of some of these quick fixes, as small business owners reuse boilerplate contracts year after year, even as their business grows and legal precedents change.

Contracts are vital assets for every business because they lay out the “rules of engagement” or expectations for each party. Whether its employment contracts, independent contractor agreements, service agreements, leases, or any other agreement that spells out the parties’ understanding and expectations, these documents act as bodyguards for the small business owner.

Many contracts renew automatically at the beginning of the year, therefore year end is the perfect time to carve out a small chunk of time to review these documents in order to significantly improve your chance of avoiding costly mistakes in 2021.

Below is a closer look at three potential problem areas.

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We all know the signs of a relationship in trouble, the little tipoffs that tell you when things are heading south.

Business relationships, however, have their own red flags and not everyone sees them.

As a lawyer whose practice focuses on business partnership disputes, I have seen upfront how ugly they can get, and I’ve noticed a few signs that my clients heeded too late.

Whether you’re thinking of getting into business or already are working with someone, here are some clues that problems lie ahead.

Breakdown in Communication

Is your business partner taking longer and longer to respond to emails? Are they brushing off your calls or skipping your regular catch-ups? There may be a reason.

Continue reading on Washington CityBizList here.

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We all know the signs of a relationship in trouble, the little tipoffs that tell you when things are heading south.

Business relationships, however, have their own red flags and not everyone sees them.

As a lawyer whose practice focuses on business partnership disputes, I have seen upfront how ugly they can get, and I’ve noticed a few signs that my clients heeded too late.

Whether you’re thinking of getting into business or already are working with someone, here are some clues that problems lie ahead.

Breakdown in Communication

Is your business partner taking longer and longer to respond to emails? Are they brushing off your calls or skipping your regular catch-ups? There may be a reason.

Continue reading on LinkedIn >>

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