When a commercial relationship breaks down — a supplier misses deliveries, a partner disputes a payment, a client refuses to honour a contract — the instinct is often to head straight to court. That's sometimes the right move, but not always the fastest or cheapest one.
What mediation offers
Mediation is a structured negotiation, guided by a neutral third party, aimed at reaching an agreement both sides accept. It's typically faster than litigation, costs less, stays private rather than becoming part of the public court record, and preserves a working relationship where the parties still need to do business together afterward.
What litigation offers
Litigation — taking the matter to court — produces a binding, enforceable judgment and is often the right route when a party is unwilling to negotiate in good faith, when the dispute involves a clear legal breach that needs a formal ruling, or when a public precedent or enforcement mechanism is required.
How to decide
A few questions usually clarify which route fits:
- Does the contract already specify arbitration or mediation as the required first step?
- Is there an ongoing business relationship worth preserving?
- How urgent is resolution, and can both sides afford a lengthy court process?
- Is the dispute mainly about facts and figures, or does it hinge on a legal interpretation that needs a court's ruling?
Many commercial contracts already require mediation or arbitration before litigation — check the dispute resolution clause first.
Before you file anything
A short review of the underlying contract and the facts of the dispute, before choosing a path, helps avoid the cost of starting down the wrong one. In many cases, an initial attempt at negotiation or mediation is worth trying even where litigation remains an option later.
Discuss your dispute