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Commercial Contract Disputes in Los Angeles CA: Advantages of Mediating

Greg Wood Dec. 1, 2022

Commercial contract disputes in Los Angeles California may represent deals worth millions of dollars. Even if they don’t, they often represent a case involving business partners who would like to maintain business with each other after the dispute is resolved. Mediation of Commercial contract disputes in Los Angeles California carries with it several advantages that litigation does not.

For example, mediation is a confidential process. In litigation, the case is public. The verdict is public. Even exhibits submitted to the court are often public. In the commercial world, there are certain pieces of evidence that your client will want to protect, such as its bid on particular projects. It may not want its competitors to be aware of its pricing structure. Commercial disputes may also contain sensitive information about the business processes, earnings, client relationships and trade secrets. Mediation is a confidential process that prohibits either party from bringing up information gleaned during the mediation session.

The old adage of “time is money” is truer in the commercial world than out of it. As a business dispute develops, employees may be paid while there is little or no progress being completed on the job. Vendors may cancel orders, causing a future delay in the project. Payments may have stopped on a project until the dispute is resolved. Waiting for the court system to finally hear a case can take years. However, mediation sessions can often be scheduled within weeks or days of a request. If the parties reach an agreement, business can continue with only a minimal delay. Additionally, most mediation sessions last less than a day, unlike a trial which can run on for weeks.