If you are involved in a commercial litigation matter, you may be wondering if informal negotiation or mediation is right for you. Both options have their benefits, but Jeremy Schulman believes that informal negotiation is the better route to take. Here’s why:
Informal negotiation is less formal than mediation, which means that there are fewer rules and regulations to follow. This can be a good thing because it allows both parties to be more flexible in their negotiations. For example, if an agreement cannot be reached on one issue, the parties can move on to another issue and come back to the first issue at a later time. This type of flexibility is not possible in formal mediation.
Another benefit of informal negotiation is that it allows both parties to retain more control over the process. In formal mediation, a mediator will typically control the flow of the discussions and the direction of the negotiations. This can be beneficial if both parties are not able to come to an agreement on their own, but it can also be frustrating if you feel like the mediator is not taking your needs into consideration. With informal negotiation, both parties have an equal say in how the negotiations unfold.
Lastly, informal negotiation is typically less expensive than formal mediation because there are no fees for a mediator or other third-party experts. This can be a significant benefit if you are working with a tight budget.
What Is Informal Negotiation?
Informal negotiation is a type of dispute resolution that involves both parties sitting down and attempting to reach an agreement without the assistance of a mediator or other third-party expert. This type of negotiation is typically less formal than mediation and often takes place before either party decides to file a lawsuit.
The benefits of informal negotiation.
- Less Formality: One of the main benefits of informal negotiation is that there are fewer rules and regulations to follow than in formal mediation. This can be beneficial because it allows both parties to be more flexible in their negotiations.
- More Control: Another advantage of this type of negotiation is that it allows both sides to retain more control over the process. In formal mediation, a mediator will often times control the flow of discussion and how negotiations play out. While this can be helpful if both parties are having difficulty coming to an understanding, it can also be frustrating for those who feel like their needs are not being considered by the 3rd party expert. By having informal discussions, all participants have an equal say about how conversations will play out ahead of time.
- Lower Costs: Lastly, another financial advantage of negotiating outside of court is that costs typically stay lower compared to when using alternative methods such as arbitration or mediation. When trying to save on expenses, attempting self-resolution through open communication may prevent exorbitant outside legal assistance fees.
Overall, there are many situations where commercial litigation matters could benefit from choosing Informal Negotiation over Formal Mediation. Although Formal Mediation has Its perks, going About things In an Informal way May often prove To Be more efficient And advantageous In The long run.