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Commercial Real Estate Disputes and Resolving Through Mediation

by | Aug 24, 2018 | Real Estate Law

Commercial-Real-Estate-Disputes-and-Resolving-Through-Mediation-Article-9.jpgIf you are involved in a commercial real estate dispute, it may be a good idea to consider mediation. Mediation has been proven to be effective in this type of situation for a variety of reasons. In many situations, mediation can be completed within a few months of the dispute arising.

The purpose of mediation is to reach a mutual agreement or to decide that mediation is not an option and the legal dispute must escalate. In some cases, mediation can successfully lead parties in the midst of a commercial real estate dispute to a mutual agreement in one meeting within a few hours. In some cases, a clause included in the real estate contract will require that the parties first seek resolution through mediation prior to allowing the legal dispute to escalate to litigation.

Mediation requires the participation of the both parties involved in the dispute alongside a trained mediator. The mediator needs to be someone who is completely unassociated with the dispute with not vested interest in the outcome. The mediator assists both parties in their pursuit of mutual agreement on a dispute resolution first by identifying the problem or sources of conflict and then guiding them towards the specific aspects of the issues that are the most important to the parties involved. The mediator will guide the disputing parties through a number of potential solutions in efforts to reach an agreement or compromise.

Another potential benefit of mediation is that, in comparison to arbitration, the parties can develop the final solution themselves rather than accepting a solution that is devised for them by a third party. Parties that reach a resolution through mediation adopt a mediated agreement. When adopting a mediated agreement, it becomes immediately binding.

Disputing parties who are unable to reach a resolution satisfactory to both parties through mediation may pursue litigation. It is best to come to a solution without litigation as it can have detrimental effects on both of the disputing parties. Negative effects can include: decreased value of parties’ interest, restraining orders imposed by the courts, restrictions imposed by the courts, etc.

There are a number of disputes that can arise from a commercial property lease transaction. For mediation or litigation assistance with a dispute of this nature, contact the experienced southern California real estate attorneys at The Law Office of the Law Office of Ernesto Aldover.