Problem
- CZK 500,000 receivable blocked (6.25% of annual turnover frozen)
- Overdue by 90+ days
- Both sides in full escalation mode
- A 10-year relationship (LTV CZK 20–30M) at breaking point
- Litigation = 18–24 months + CZK 200–250K in costs + 50/50 chance of winning + relationship destroyed
Intervention
A structured mediation process: problem diagnosis, facilitated joint session. Reframe from ‘who is right’ to ‘how do we find a solution that works for both sides’. Negotiated outcome: full payment of CZK 500,000 + replacement of the damaged chairs + 5% discount on the next order.
What remained
A mediation agreement with a built-in prevention mechanism, quarterly check-ins for early problem resolution, and a company-wide ‘Mediation First’ policy.
Key challenge
The hardest part was shifting the conversation from ‘who is right’ to ‘how do we save the relationship and find a solution that works’.
Results
- Mediation concluded within 14 days with a signed agreement
- Time saved: 14 days vs. 18–24 months in court
- Cost saving: CZK 200–250K in legal costs averted
- Commercial relationship preserved (LTV CZK 20–30M)
- Full payment of CZK 500,000 + replacement goods + 5% discount
Mediation saves time, money and relationships. Litigation is the last resort – not the first move.
