Covid19 and litigation
So, we come to the end of 2020 and we have seen some significant changes in the way businesses have struggled and tried to manage through these unprecedented times.
So many businesses and business owners have been unable to fulfil their contractual obligations which have resulted in and will continue to result in a huge increase in legal action being commenced. The Courts simply will not be able to cope with the influx of cases. There are already huge delays and things are likely to get worse.
It is a very difficult times for all types of business owners who are out of pocket for services provided or goods delivered. There is a plethora of reasons as to why businesses owners remain out of pocket.
These are the people who will have to wait for a resolution which is neither quick nor cheap. Even if their claim appears to have the success written all over it, there is still the stress on the company’s financial position and trying to make ends meet and litigation risk to contend with as no doubt a company would rely on a force majeure clause or the doctrine of frustration.
Steps you can take
Business owners tend to always consider litigation as the first port of call without realising that this route can often be time consuming, stressful, and many months to reach a conclusion. However, the parties attending mediation has many benefits. Mediation is a confidential process that can be used before proceedings have been issued or during proceedings. An independent mediator is appointed by the parties to help them negotiate a mutually agreeable binding agreement.
Often parties can become so entrenched in a dispute that they stop communicating. The mediator is there to facilitate that dialogue in a controlled and confidential environment. The process usually takes no more than one day and both parties can often leave with an agreement they are both happy with.
Mediations are conducted in person with each party having a room and the mediator going between the rooms during the session. However, due to the current lockdown restrictions, there are various online platforms which have successfully been used. So, despite delays in the Courts, mediations can occur at a time and date that suits the parties.
It saves time and cost! Most mediations are conducted on a fixed fee basis which is split between the
parties equally. This is the first step to demonstrate a joint intention to engage in the process to resolve the dispute amicably.
A great benefit to mediation is that businesses can continue their business relationship. By having a mediator there, the parties can focus on communicating their issues with any permanent damage to their relationship. It also gives the parties greater control over the process and outcome and can often negotiate outcomes that the Court would not have the power to do.
Next Steps
If you want to find out anything further about this topic then please feel free to call on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email vee@navigatebr.com
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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