Just by itself, the concept of mediation can have a positive impact on a seemingly intractable conflict because the two parties have decided to solve their disputes in a more civilized and less costly way. I do not mean to suggest that litigation is uncivilized, but I do believe that litigation is more about emotion than about the law. If no one else helps to solve the problem, the courts play the ultimate authority.
For example, litigation can occur in family owned businesses when the historical authority responsible for resolving inter family disputes is no longer available or has passed away. Mediation has a different connation from litigation by suggesting that the parties are willing to take responsibility for the outcome. By definition, they have to take ownership over the process as well as the outcome. The chances of the agreement being broken are therefore reduced.
Mediation takes a minimum of two parties who are engaged in a disagreement and who choose to go to a third party for help in resolving their differences. That third party is neutral—his/her client is the agreement itself.
The FamilyBiz Q&A is a weekly column that provides answers to your family business-oriented questions from the subject matter experts at Thomas D. Davidow & Associates.
Thomas D. Davidow is the founder and principal of Thomas D. Davidow & Associates. www.tdavidow.com Dr. Davidow has more than 30 years of experience working with hundreds of national and international family controlled enterprises. He has worked with businesses in diverse fields including retail, distribution, manufacturing, real estate, construction and more.
If you would like speak with Dr. Davidow, he can be reached at (617) 739-2868 or by email at tom@tdavidow.com.
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