Contract dispute resolution is crucial to preserving successful business relationships. Contracts define mutual rights and obligations, enabling the parties to focus on the operational aspects of the business project.
Disputes arise when one or both parties neglect their responsibilities, breaching the contract and compromising future cooperation. Until the conflict resolution, neither side can continue doing business as usual. For that reason, effective dispute resolution is vital. Traditional litigation proved unsuccessful in bringing mutually beneficial outcomes. As an out-of-court process, mediation emerged as an effective way to settle and save relationships. In this day and age, mediation is transitioning to a more advanced, online setting, allowing the parties to get the most out of modern technologies.
This article will offer insights into online contract dispute mediation, the typical methods online mediators use, the advantages of resolving contract disputes remotely, and the challenges of negotiating contested issues online. Read on to learn more.
Contract Disputes Mediation in a Nutshell
Contract dispute mediation is an alternative dispute resolution method that offers multiple advantages for dealing with contract disputes. In contrast to litigation, mediation is a neutral, voluntary, confidential, and time and cost-effective process.
The process typically has four stages: an introduction, opening statements, private sessions (caucuses), and joint sessions. After caucuses, parties sit to negotiate the contested issues openly in a joint session. The mediator (a former judge, attorney, or another professional) is a neutral facilitator, helping the parties find common ground and settle the dispute.
Without the decision-making authority, the mediator assists the parties in overbridging the differences while preserving the confidentiality and integrity of the process. The key to successful mediation is creating a non-adversarial environment where parties can discuss issues openly, reaching mutually beneficial solutions.
How is Technology Changing the Game?
Traditional mediation involves in-person sessions in which disputed parties work with the mediator to produce positive outcomes. But advanced technologies introduced new possibilities and proved to be a game-changer for contract dispute mediation.
Modern-day technology plays a crucial role in online mediation. Parties involved in a contract dispute can enjoy the full benefits of advanced computer tools, such as mediation platforms, secure chat rooms, video conferencing, cloud-based memory, online document sharing, e-signatures, etc. Communicating in real-time while simultaneously sharing and editing PDF documents is a scenario no one could imagine a few decades ago. The accessibility and instant communication of modern technology is crucial for building trust, reducing tensions, and reaching positive outcomes. Mediation has always been superior to litigation. But matched with advanced technology, mediation is unrivaled among all dispute resolution methods (conventional and non-conventional).
Online Mediation Methods
Mediators taking advantage of digital technologies use various methods in mediating contract disputes online. The most common are the following:
Communicating via email is the most common online mediation form. Email talks allow the parties to exchange information at a slower pace. In contrast to in-person or real-time online mediation, emails offer the extra convenience of carefully planning your strategy and crafting responses. The non-intrusive email communication allows the parties to participate when it best suits them. There is no fear of attending (or missing) mediation sessions, and the risk of making the wrong move is significantly lower.
- Phone and Videoconferencing
Phone and especially video conferences represent a step further in utilizing modern technology for mediation purposes. Unlike email exchanges, parties communicate in real-time. For some, that is a convenient tool for reducing the negative aspects of email communication (for example, lack of in-person experience). For others, video conferencing provides a unique opportunity to conduct mediation sessions between parties in different parts of the world while preserving the possibility of watching each other’s facial expressions, body language, and other in-person cues.
- Online Mediation Platforms
Technology supporting mediation developed from email and videoconferencing to integrated online platforms that combine all the best digital features into one product. Online platforms allow mediators and parties to schedule appointments and mediation sessions, share documents, manage cases, track progress, and hold private and joint sessions in secure chat rooms. Modern platforms also provide the ability to pay fees, making the overall mediation experience uniquely convenient.
The Advantages of Online Contract Dispute Mediation
Online mediation multiplies already existing advantages of this out-of-court method while adding new and unique benefits.
- Accessibility
Mediating contract disputes online enables parties across the globe to convene in one virtual space. The accessibility of online mediation eliminates traditional obstacles such as distance and time constraints and costs associated with traveling long distances for mediation sessions. In addition to accessibility, online mediation platforms allow parties to schedule sessions and pay fees from the comfort of their homes or offices.
- Cost-Effectiveness
Cost-effectiveness is another advantage of online mediation. Unlike traditional mediation, neither parties nor the mediator does not have to travel to mediation sessions. Also, there is no need to hire a conference room or other physical space – all participants stay at their homes or offices. Of course, there is no discovery, deposition, or witness examination in an online (just like in traditional) mediation. All that reduces costs, making online mediation affordable for a broad client base.
- Confidentiality
The number one task of each mediator is to keep contract disputes out of public record. Confidentiality is vital to preserving business relationships. Online mediation provides the same guarantees. Parties participating in mediation sessions through online platforms can rest assured that their privacy is protected. Online platforms have built-in security mechanisms, while chat or videoconferencing rooms have algorithms and multi-step verification.
Getting the Most Out of Digital Age Mediation: How to Overcome Challenges?
The numerous benefits of online mediation platforms do not come without inherent risks and challenges. A lack of contextual cues, skepticism about the process, detachment between the parties, and a tendency for negative assumptions are the most typical issues online mediators face. An experienced online mediator should take the following steps to overcome the challenges:
- Provide Contextual Cues
Parties engaging in online mediation often miss the context enabling them to estimate strategies. The lack of contextual cues (facial expressions, sense of physical presence, etc.) prevents successful negotiation and settling efforts. To remove such obstacles, the mediators should provide the context by encouraging the parties to communicate freely and convey their feelings and thoughts as openly as possible. Restating what the parties said and asking for clarification also helps to provide more context.
- Encourage Mutual Trust
Resolving contractual disputes via online platforms is a new experience for most people. Feelings of uneasiness and distrust are natural reactions to the unknown. To reduce discomfort and enhance mutual trust, the mediators should set aside time for touring the online platform, explaining to the parties how it works, and telling them about the built-in security mechanisms.
- Minimize Detachment
Online mediation sessions (including other events) often leave people without real-life experience, causing them to detach from the other participants. The dehumanizing effect of online communication can compromise mediation efforts. Instead of creating a warm and friendly atmosphere, online sessions can produce the opposite effect. An experienced mediator will minimize detachment by sharing personal stories and showing compassion, helping the parties feel the human presence.
- Reduce the Tendency for Negative Assumptions
The online communication features mentioned above (dehumanization, anonymity, detachment, lack of trust) create negative assumptions about the process. A successful online mediator can break the negative pattern by building trust, asking parties about their feelings, praising their efforts, and encouraging them to move forward.
Key Takeaways
- Contract dispute resolution is vital for preserving business relationships. While mediating contract disputes has numerous advantages over litigation, online mediation brings conflict resolution to another level.
- Modern technologies are a game-changer for contract dispute mediation, allowing the parties to enjoy the benefits of online platforms, cloud memory, virtual chat rooms, document-sharing services, and instant communication.
- The most common types of online mediation involve email, phone and videoconferencing, and online mediation platforms.
- Online mediation platforms offer multiple advantages, such as accessibility, cost-effectiveness, and confidentiality.
- Mediators should use all available means to reduce the negative side-effects of online mediation, including providing contextual cues, encouraging mutual trust, minimizing detachment, and reducing negative assumptions.
A Top-Notch Florida Online Mediator: Resolving Contract Disputes with Efficiency and Expertise
Hal Wotitzky is a certified Florida mediator with decades of experience.
His expertise comprises in-depth contract law knowledge, sophisticated mediation skills, and advanced online technology skills. In addition to combining the legal, technical, and psychological qualifications, Hal brings compassion, understanding, and empathy. With Mr. Wotitzky, resolving contractual disputes through an online platform has never been more humane.
Reach out today at (941) 621-4249 or via email at hal@WotitzkyMediation.com to schedule your consultation.
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