A commercial mediation usually may appear to involve a one only aspect, the economical interests of the claimants.
Though, as in any type of mediation, commercial cases hide multiple layers of interests and needs of the parties. A recent case as example.
Two contractual partners, the provider of commodities and their local agent were reciprocally claiming a damage as a consequence of a breach of contract.
The case
Commercial Agency Agreement and clause of Exclusivity.
Initial Statements
The principal, a commodities’ provider, claimed the breach of the clause of exclusivity. From their point of view the agent was proposing to their common clients similar products of another provider.
The provider wanted to stop any relationship and retain the commissions due to the agent for the last year as a refund for the breach of contract and the loss of clients.
The agent denied the circumstance of violating such exclusivity.
According to the agent the principal wanted to interrupt the contract based on personal reasons of the new company manager.
From the agent’s perspective the alleged exclusivity’s breach was only an excuse to terminate the relationship avoiding the payment of a penalty for unilateral interruption of the contract.
The Mediation Process
The dispute between the parties appeared to focus on the juridical correct labelling of the interruption of their contract of agency and who was due to give money to the other for the damage.
The lawyers assisting the parties made a great preparatory job in putting together the evidence supporting each thesis.
However, once in the mediation process, insisting on finding which assumption should prevail and who should pay what was keeping the parties stuck in a deadlock with no chance to find a resolution.
The Outcome
A successful outcome was reached putting aside the juridical name of the end of their cooperation.
All together we tried to take a different path and focus on two alternatives: any possibility to make up the relationship between the parties or mutually agree to terminate the contract. Once having making clear that there was no chance to build up a new mutual trustful relationship they started to work to find an amount of money to be paid by the provider to the agent fair for both of them to conclude the relationship amicably.
At that stage it was no longer important labelling the termination and they stepped out from the mediation with relief.
The provider was in some way happy to pay an amount of money not to be stuck in the relationship. The agent felt like he got the right compensation for the job done and was ready to look forward.
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