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A smarter path to resolution.
Your business dispute is costing you money, energy, and sleep. Court feels like the only option. But litigation can take years and cost more than the dispute is worth. Mediation might be smarter.
Not every dispute suits mediation.
Let us be direct. Mediation is not a magic solution.
It requires willingness from both parties, and there are situations where court is the only real option. But for many commercial disputes, mediation offers significant advantages.
The key question is whether both parties genuinely want resolution. If one party is determined to fight, or if you need a precedent set or a legal principle established, mediation probably will not work.
When mediation works best
Ongoing business relationships
When you need to keep working together after the dispute is resolved. Suppliers, customers, joint venture partners.
Why it works: Litigation destroys relationships. Mediation preserves the possibility of continuing to do business.
Partnership and shareholder disputes
When business partners or shareholders disagree about direction, contributions, or exit terms.
Why it works: These disputes are intensely personal. A neutral mediator can help separate emotions from business issues.
Contract disputes where both sides have merit
When both parties have reasonable interpretations of what was agreed.
Why it works: Courts pick winners. Mediation allows creative solutions that recognise both positions.
Disputes where publicity would harm both parties
When public court proceedings would damage reputations or reveal sensitive business information.
Why it works: Mediation is confidential. Nothing disclosed becomes public record.
Time-sensitive matters
When the business needs a resolution now, not in two years.
Why it works: Most mediations resolve in one or two days. Court proceedings take months or years.
Time and cost differences are significant.
| Factor | Mediation | Litigation |
|---|---|---|
| Typical duration | 1-2 days | 1-3 years |
| Cost per party | Lower | Significantly higher |
| Confidentiality | Private | Public record |
| Control | Parties decide | Judge decides |
| Relationship impact | Often preserved | Usually destroyed |
| Creative solutions | Unlimited options | Limited to legal remedies |
Success factors for business mediation
Having represented clients in many commercial mediations, we have seen what makes the difference between success and failure.
Decision-makers present
The person who can say yes needs to be in the room, not on the end of a phone.
Realistic expectations
Coming with a genuine willingness to consider options, not just to go through the motions.
Good preparation
Understanding your own position, your priorities, and what you can live with.
Quality legal advice
A lawyer who can help you evaluate proposals and spot potential issues in real time.
Focus on interests
Looking at what you actually need, not just what you are entitled to claim.
Experienced mediator
Someone who understands commercial reality and can maintain momentum.
Hawke's Bay commercial disputes
Business relationships in Hawke's Bay often extend beyond the immediate dispute. Your supplier might also be your rugby club teammate. Your difficult customer might be your neighbour.
Burning bridges through litigation has consequences in a regional community.
We have seen particular value in mediation for:
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Wine industry: Grape supply disputes, contract variations, quality disagreements
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Construction and trades: Payment disputes, scope disagreements, defect claims
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Agricultural: Land use agreements, partnership exits, succession disputes
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Post-cyclone: Insurance, rebuild contracts, business interruption claims
What if it does not work?
Not every mediation succeeds. If agreement is not reached, you have not lost anything. Everything discussed in mediation is "without prejudice" and cannot be used in subsequent court proceedings.
You retain all your legal options. In fact, many unsuccessful mediations still help. They narrow the issues, clarify positions, and often lead to settlement shortly afterwards when parties have had time to reflect.
Key Takeaways
- Mediation works best when both parties want resolution
- Commercial disputes often suit mediation better than court
- The cost and time savings are significant
- Creative solutions are possible that courts cannot order
- Regional relationships often make mediation the smart choice
- If mediation fails, you keep all your legal options
Related Reading
What is Mediation and How Does It Work?
Mediation is a structured negotiation with a neutral third party. Learn how the process works, what the mediator does, and when mediation makes sense.
What to Expect in Your First Mediation
Never been to mediation before? Here's a practical guide to what happens before, during, and after mediation, and how to give yourself the best chance of a good outcome.