Fiduciary duty mediation is defined as a structured negotiation in which a neutral third-party mediator facilitates discussions between principals, fiduciaries, other interested parties and legal counsel to reach a mutually agreeable resolution to a dispute, which is called a settlement agreement. Unlike litigation, mediation fosters open communication and collaboration, helping parties find solutions that address legal, financial and emotional concerns, and their settlement agreement is enforceable in court, acting as a contract.

Our panel of retired judges and seasoned attorneys have settled numerous fiduciary duty disputes throughout the multiple decades that ADR Systems has been in business. These have included:

• A dispute involving alleged violations of a memorandum of understanding by issuing additional equity and diluting plaintiff’s interest despite a provision that granted their prior approval for issuing additional stock

• A dispute stemming from the 2007-2008 US economic meltdown in which a large insurance company sought to rescind coverage of hundreds of thousands of second lien mortgage loans and lines of credit based on alleged fraud in the underwriting process; case involved 20 attorneys from across the US; the entire matter was resolved on the eve of trial

• A dispute involving claims that a fiduciary failed to timely pay a commercial mortgage on behalf of the principal

Parties to a fiduciary duty dispute enjoy various advantages when they mediate it at ADR Systems.

Faster Resolutions: Mediation can resolve disputes in weeks or months rather than years, reducing the time burden on plaintiffs and defendants

Cost Savings: Avoiding lengthy court battles saves money otherwise spent on legal fees, expert witness costs and administrative expenses.

Confidentiality: Unlike public court proceedings, mediation is confidential, protecting reputations and sensitive information.

Reduced Stress: Mediation fosters a collaborative rather than adversarial atmosphere, reducing emotional strain for all involved.

Greater Control: Mediation removes the uncertainty and risk associated with litigation, where outcomes can be all-or-nothing; both parties have a say in the outcome of the case rather than leaving the decision in the hands of a judge or jury.

Preserved Relationships: Open dialogue allows principals and fiduciaries to maintain professional, civil relationships when possible and, perhaps, begin to rebuild trust.

Experienced Neutrals: ADR Systems’ panel of mediators consists of retired judges and seasoned attorneys with decades of hands-on knowledge of the disputes before them and an ardent passion for resolving them.

Mediation is a practical solution for many fiduciary duty disputes. It is particularly beneficial when parties seek a resolution that prioritizes confidentiality, expediency and cost-effectiveness.

If you are representing clients involved in a fiduciary duty dispute and want to pursue mediation as an alternative to litigation, explore our Find A Neutral page to review the bios of mediators with experience mediating fiduciary duty disputes.

Submit your fiduciary duty case through our Neutral Availability Form or Contact Form.