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The COVID-19 lockdown has brought many new challenges to all businesses across the world, whether small or large. One of them is that many staff members now work from home. This resulted in an increase in the use of technology.

The challenges for small businesses are usually different to those facing large organizations, but for all, the basic challenge is survival.

Let us look at two hypothetical cases:

  1. A small business may not be able to pay the full rent during the lockdown and say three months after it has been lifted. The Landlord is reliant on the rental income. If he insists on the rent, the tenant may go under and there will be no tenant to pay the rent after lockdown has been lifted.

  1. A large business may not be able to pay its suppliers (as two retailers have already officially announced), yet the small business is reliant on the payment to continue to purchase goods to manufacture the end-product. If he does not get paid, he cannot produce, and the large business will have no product to sell.

These cases are simplified problems that presently exists in real business. Both the small and large companies are reliant on one another.

All businesses need to survive. In order to be able to do so we need a win-win solution. Litigation is not an immediate solution for the following reasons:

  1. Rule 41A dictates that mediation must have been attempted

  2. Litigation is expensive

  3. Litigation is very time consuming.

  4. It is a win all – lose all situation

An alternative is obviously mediation. By going the mediation root, the interests of both parties will be considered, and a win-win settlement reached.

Wilbrink and Associates can assist even during the lockdown period as we will be making use of conferencing technology.