of before. Once an agreement is reached between the parties, hands are shaken and business resumes, without the further complication of public scrutiny.

In a court case, there is usually one winner and one loser. Both sides present their cases to the judge and he alone decides the outcome. The business partners have no control in the decision making process. Someone goes away from the proceedings happy and the other person leaves feeling frustrated and angry. The case is decided but the business relationship is ruined.

The goal of is to create a win-win situation. Since both parties come to the meeting willing to give and take a little, this is very often the outcome. Even though each side may have had to give in on one point or another, the fact remains they were able to work together to find a solution. This type of communication is essential in a successful business partnership. With mediation, an agreement is reached while preserving the business relationship. This is perhaps the most important outcome of the process.

Some may wonder if the agreement is binding? The answer is, yes, it is. Once both parties agree, a contract can be drawn up, signed, and will be legally binding. A contract such as this can even be used to address possible future problems before they even happen.

So, what happens if an agreement is not reached? Can information used in the be brought up in a court case? For this question, the answer is a resounding no! All parties involved in the process are required to sign a confidentiality agreement. This means that nothing that is said or discovered during the process can be used as evidence in a court case.

Therefore, the only question left to answer is, what is there to lose by choosing over a legal battle? Obviously the answer is, nothing! Business is a fast, inexpensive, confidential process that most often results in a win-win situation for everyone involved. Business reputations are not at risk and relationships remain in tact. If a resolution is not reached, at least the effort has been made, and there will be no negative repercussions as a result.

Interestingly, even Bill Gates looked to during Microsoft’s very publicized legal battle with the Justice Department and 19 of the United States. Unfortunately, in this case, was not very effective. Of course, there was very little incentive for Gates to try to appease his accusers. So in the end, unless you are a monopoly-holding millionaire with nothing to lose, a quick, private compromise is probably more preferable to a public three-ring circus.

Article Source: http://www.articlerocket.com

By: Austen Koberstein. The Law Offices of Joseph J. Nardulli serve business and corporate clients in Orange County and Southern California. They specialize in mediation, arbitration, and employment litigation. Learn more about litigation or arbitration at www.JosephNardulli.com

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