Minnesota Construction Mediation And Arbitration Lawyer

Construction Mediation and Arbitration Attorney in Minnesota

Construction disputes are a common challenge in Minnesota projects, and resolving them efficiently is crucial for keeping work on track. If you hope to avoid litigation in a courtroom, you may wish to pursue mediation or arbitration. A Minnesota construction mediation & arbitration lawyer can guide you through these alternative resolution options with clarity and experience. Resolving these conflicts through litigation can be expensive and time-consuming, but our attorneys can help you navigate a cost-efficient and less stressful resolution.

At Minnesota Construction Law Services, we understand how frustrating a construction dispute may be and how it can place you and your construction business in a precarious situation. As business owners and entrepreneurs ourselves, we understand how attractive mediation or arbitration may be, as it typically incurs lower costs and is less time-consuming.

At MNCLS, our attorneys are experienced with mediation and arbitration. If you’re looking for an attorney to aid in your dispute, our team works closely with you to pursue resolution strategies that protect your interests and preserve your business relationships. By avoiding drawn-out legal battles, you can maintain professional momentum and focus on what matters—delivering on your construction goals.

Resolving Construction Disputes Through Mediation & Arbitration

Mediation and arbitration are dispute resolution options often used as an alternative to litigation. Mediation involves a neutral third party helping both sides reach a voluntary, mutually agreed-upon resolution. In comparison, arbitration involves presenting the dispute to a neutral arbitrator—similar to a judge—whose decision is legally binding. These practices provide an alternative route for settling a dispute rather than relying on the court system.​

Minnesota Construction Law Services advises and guides contractors through the mediation or arbitration process. Our clients are fully equipped to prepare and handle the details of mediation or arbitration cases to make it as quick as possible without disrupting your business.

Defining Construction Mediation in Minnesota

As the 8th largest employer in the state of Minnesota, the construction industry is no stranger to legal disputes and conflicts. Disputes often arise thanks to miscommunication or breaches of contract, and some folks might be under the impression that costly court litigation is their only option. Whether you are a luxury home builder in Duluth or you run a successful architectural firm in downtown Minneapolis, our team is here to help you through other possible mediations.

In Minnesota, construction mediation is a voluntary option, meaning it is not required to take place when resolving conflict, but it can prove beneficial over litigation in certain cases. During the mediation process, a third-party mediator will help the conflicting parties work together to reach a resolution that is mutually accepted. Additionally, unlike arbitration or litigation, mediation is not binding, meaning a verdict is not issued, but rather, a decision is made.

There are several benefits to choosing mediation in a construction dispute in Minnesota, including the following:

• Save on costs. Typically, construction mediation is much cheaper than trying to take the dispute to court. This is because mediation is less formal than a courtroom trial and usually takes a smaller amount of time, which helps to reduce legal fees and other related costs.
• Time efficient. When you work to resolve a construction dispute through mediation, a resolution can be reached in a simple matter of weeks or even days. Litigation, on the other hand, can take several months to years, depending on the nature of the dispute and the desired resolution. Mediation is much easier, so the parties involved are able to return to their work much quicker.
• Privacy. When you enter into mediation to resolve an issue, both the case and the mediation sessions remain confidential. The details of what is discussed and the settlements or resolutions that are reached are not made public knowledge. This can help protect your reputation as well as the reputation of your business. Conversely, courtroom litigation proceedings are always made public and are documented with a court record.
• Maintaining control. When you enter into mediation, you and the other parties involved have a higher sense of control over the outcome of the mediation. Unlike in litigation, where a judge will impose the solution for you, mediation allows every involved party to maintain some control over the resolution and outcome. This allows you to negotiate your own terms as they correctly fit your needs and the needs of your business(es).
• Preserving working relationships. Because of mediation’s collaborative nature, engaging in this kind of dispute resolution can allow you to maintain or even improve your professional relationship with the other party involved.

When you enter into construction mediation, both parties must agree on the choice of mediator for your case. Hiring someone who has experience in construction law and mediation is vital. You then prepare for the mediation, gathering all necessary documents and related information. It can also be helpful to create an outline regarding your position and priorities for dispute resolution.

Next, all involved parties will meet with the mediator in a neutral place, enter into discussions and negotiations, and clarify all issues. If an agreement is reached, a settlement document can be drafted, and only once it is signed can it become a contractual agreement.

Defining Construction Arbitration in Minnesota

In 2023, only 8% of arbitration cases involved the construction industry. Though this statistic seems small, arbitration remains a successful and wise way to handle a construction dispute, depending on the nature of the dispute and the relationship of the parties involved. Arbitration is often confused with litigation or mediation. However, it is much different from either method of resolution.

Arbitration is similar to litigation without the involvement of the court. In arbitration, the parties involved agree to submit their construction dispute to an arbitrator over trying the dispute in a courtroom. The agreement allows the arbitrator the power to issue a legal decision regarding the rights and obligations of the parties involved, and the decision made by the arbitrator will become legally binding. There are several benefits to construction arbitration, including:

• Time. Realistically, it is much easier to schedule construction arbitration than litigation. This is because litigation is typically dependent on the availability of the court, the judges, and even the juries. Arbitration, on the other hand, follows a strict schedule and can take a much shorter amount of time, allowing everyone involved to save on legal fees and other costs.
• Costs. In arbitration, there is a limited discovery period, which involves sharing certain documents and entering into discussions about whether certain documents are actually necessary.
  Due to the limited discovery phase, certain costs that are more involved with lengthy litigation can be avoided.
• Privacy. Unlike litigation, arbitration is a private process that is kept off the public record. This can help mitigate any damage to your personal and professional reputation and can preserve your relationships.
• Finality. Awards in arbitration are final and enforceable in the state of Minnesota. The parties involved in arbitration can have confidence in the finality of the resolution and conclusion of their arbitration case.

What is Our Process?

Step One: Learn your objectives and goals

We want to understand how you define a successful outcome. For transactional issues, what are the important issues that need to be addressed in the document we are drafting? For disputes, what is the desired resolution or outcome?

Step Two: Understand your concerns and issues

For transactional, what have the parties agreed to and has an agreement been reached on all the key issues? For disputes, we need to know whether the contract addresses the issue, how it was addressed, who’s at fault, and what damages resulted.

Step Three: Craft the strategy

For transactional, we draft a document that will achieve the desired outcome and reflect the client’s business. For disputes, we uphold the obligations stated in the contracts and/or determine reasonable remedies for issues not addressed in the contract.

Step Four: Implement the remedy

Following the strategy developed with and approved by the client, we move to achieve the intended result. Whether drafting a document or resolving a dispute, we’ll keep you informed on how things are going so you can focus on your business.

Common Issues in Mediation and Arbitration for Contractors

While mediation and arbitration are designed to accelerate the resolution process, as compared to litigating a dispute in court, if the contractor is not well prepared for the process it still risks spending a significant amount of time and money. MNCLS guides you throughout the entire process, from determining the best route to agreeing on a settlement that is in the best interest of your business.

FAQs

Speak With a Trusted Construction Mediation & Arbitration Lawyer in MN Today

If you believe that mediation or arbitration is the correct resolution method for your construction dispute, contact the offices of Minnesota Construction Law Services. We help take care of the legal resolutions so that you can focus on growing your business and providing your employees well-earned benefits.