A business needs to have good procedures with all customers to avoid disputes. This is especially important when the business is providing service or products on a contracting basis. Prior to starting work, all projects should be covered by a written agreement, and generally signed by both parties, that specify the work to be performed, material required, schedule and a stipulation that all disputes will be settled by mediation or arbitration. Any changes to the agreement or scope of work should be in writing and again signed by both parties.

Mediation has many benefits compared to lawsuits:

• It's affordable and voluntary. The service is free and attorneys are usually not needed, while court cases can cost thousands in legal fees.
• It's timely. Mediation cases are usually heard in one to three weeks, while court cases take months or years.
• It's convenient. The parties control the outcome by reaching a mutual agreement without a judgment of fault, while court cases are decided by judges and juries based on facts and law and often neither party is happy with the outcome. Mediation is less stressful because it's an informal process without depositions and court testimony under oath.
• It's confidential. Mediation sessions are held in private so that parties need not air their grievances in public.

The Santa Clara County Dispute Resolution Program Services is a good, cost effective way to resolve business disputes. Contact (408) 792-2321 at the Santa Clara County Government Center, or Email: drps.smallclaims@hrs.co.scl.ca.us . Dispute Resolution Program Services has been in operation for about 30 years and has an administrative staff and trained mediators who conduct mediation sessions with the disputing parties to reach an agreement that both parties can live with in the future.  More information on the program can be found at www.sccgov.org/portal/site/drps

The staff will call the initiating party to discuss the situation and determine whether mediation is appropriate to resolve the issue. A mediation hearing will be scheduled and both parties notified of the date, time and location of the hearing along with a brief explanation of the procedures. The mediation is a voluntary process directly involving both parties and the neutral mediator. The parties may bring their attorneys or other additional parties if cleared in advance, but the parties speak for themselves and make their own agreement. Most cases do not involve attorneys. Mediation services are free to the parties.  All notes taken by the parties and the mediator during the mediation will be collected and destroyed (so that the mediation process may not be used as a tool for preparing for a court appearance).

The mediator guides the parties through a process to identify the problem, prioritize issues, generate options, evaluate options and reach an agreement. The mediator writes the agreement, which is signed by each party and the mediator. Each party receives a copy and the original is kept on file at Dispute Resolution Program Services. Agreements are legally enforceable documents. A large majority of the cases result in agreements and compliance with the agreements afterward is high. 

If the parties are unable to reach agreement in mediation, then, at any point during the mediation, they have the right to terminate the process and exercise their right to go to court. The Dispute Resolution Program Services staff will provide information about filing a claim in small claims court, which is the next-least-costly option.