Mediation: How to Get Paid Without Losing the Client!
Mediation is a way to resolve an unpaid invoice dispute with help from a neutral person who helps both sides find their own agreement. It is usually cheaper and faster than court and can help recover money while preserving the client relationship. Once both sides sign the settlement agreement, it is binding like a contract.
This video is general information, not legal advice. Mediation rules and the enforceability of settlements vary by country — speak to a qualified lawyer about your situation.
Key takeaways
- The mediator helps both sides find a deal, rather than deciding who is right.
- Mediation is usually voluntary, private and confidential.
- Both sides must accept the deal; a signed settlement is binding like a contract.
- Mediation is usually cheaper and faster than court and can preserve the business relationship.
What this video covers
The video explains mediation through an unpaid-fees dispute: Bruno, the owner of Ursus Gym, owes a lawyer three months of fees. Court feels too brutal, so they try mediation in ice baths, a sauna and an arm-wrestling match. First, it introduces mediation as a way to resolve a dispute with help from a neutral person. The mediator helps both sides find their own deal; they do not decide who is right. Mediation is usually voluntary, private and confidential. The discussion then turns to finding an agreement, including the suggestion of a lifetime membership instead of payment. A deal only works if both sides accept it. Once both sides sign the settlement agreement, it becomes binding like a contract. In some countries, it can also be made enforceable like a court judgment. The closing lesson is that mediation is usually cheaper and faster than court, and it can recover the money while saving the business relationship. Some courts encourage or require an attempt at mediation before trial, but the rules vary by country. The video provides general information, not legal advice, and advises speaking to a qualified lawyer about your situation.
