What to Expect from Commodities Mediation
Although mediation has been around for several decades, it continues to expand into new and exciting areas. Commodities matters may involve issues related to futures such as making investments based on ideas related to the future market prices of the investments. Mediation may be used to resolve issues related to future investments, claims against introducing brokers, merchant commission, allegations regarding misrepresentations or omissions of material facts, providing unsuitable investment advice, conflicts of interest and other matters involved with commodities.
In mediation, the parties agree to meet with the help of an unbiased mediator who may have special training in the topics. In addition to this special knowledge, the mediator also has a special background in conflict resolution and communication training. He or she can often communicate in a way that the parties have not encountered so that he or she can understand the source of the conflict, realize what the parties are after and assess what possible solutions the parties may agree to.
The parties benefit from the mediation process because they get to see their case from a neutral perspective and can realize the possible alternatives if they do not reach a settlement on their own terms through mediation. They also have access to the other party and the ability to negotiate a settlement directly rather than waiting for a remedy furnished by a judge or jury who are not familiar with the parties.
Because many people working in commodities rely on ongoing relationships, mediation can help the parties approach the problem in a more cordial manner that is more likely to preserve relationships. While parties involved in litigation or arbitration will likely terminate their relationship, those involved in mediation may be more likely to maintain this relationship and maybe even strengthen it so that it can lead to new business dealings in the future.