No corporation is immune to shareholder derivative lawsuits. Shareholder derivative actions in Florida strike corporations of all sizes and in all industries. These cases may be difficult to navigate, even for attorneys with decades of experience. Shareholder derivative actions in Florida involve a number of parties, as these actions are filed by shareholders who alleged some wrongdoing committed by the corporation. When the corporation fails to act, the shareholders may then bring a suit.
For attorneys, alternative dispute resolution has become an effective tool for resolving these actions. Specifically, mediation allows the parties to maintain control over the decisions made in these cases while reducing their legal expenses and expediting the finalization of the action.
Attorneys should explain the many benefits mediation provides in these cases, as most individuals are wary of how they will be perceived if they agree to attempt settling the case. Once mediation has been scheduled, attorneys must keep a number of points in mind as they approach their mediation date.
Since shareholder derivative actions are a unique type of lawsuit, it is best to select a mediator who has experience in negotiating these types of disputes. The mediator should demonstrate a track record of negotiating a large number of these cases to settlement.
Allow the mediator to remain in control during mediation. Often, attorneys try to take over the mediation process and rush settlement negotiations. However, such efforts often backfire, and the mediator may be forced to declare an impasse. In shareholder derivative actions, it is imperative that the attorneys allow the mediator to encourage settlement negotiations between the parties.
Although shareholder derivative actions are in some ways different from other civil lawsuits or other common business disagreements, they lend themselves well to mediation.