Pre-Mediation Report

Case Parties

• IT Corp
• ABC Corp
• client-supplier
• 5 years

1. Case Overview

• The dispute concerns unpaid invoices and service quality disagreements between IT Corp and ABC Corp after a five-year business relationship.
• The core dispute appears to involve conflicting claims about payment obligations, service delivery, and responsibility for website downtime, expressed with uncertainty.
• Possible escalation factors might include sudden termination without adherence to contract terms, accusations of overcharging, and power imbalances between the parties.
• Visible mediation risks include entrenched mistrust, conflicting narratives about contract compliance, and strong emotions related to perceived injustice.

2. Reconstructed Timeline

• Up to November 2023: IT Corp provided services including extra hours and weekend work as requested by ABC Corp.
• November 2023: ABC Corp stopped paying IT Corp despite continued service delivery.
• August 2023: ABC Corp brought in a consultant recommending retroactive price reductions.
• Service period ended with hosting agreement acknowledged to end; subsequent website downtime occurred after ABC Corp delayed migration and took control of DNS.
• ABC Corp sent a payment demand for $120,000 claiming damages and overbilling; IT Corp claims $45,000 is owed to them.
• Insufficient data on exact dates of contract termination and communication details during dispute escalation.

3. Explicit Claims

Side 1 (IT Corp)

• ABC Corp stopped paying starting November 2023 despite ongoing service and extra work.
• Extra work including late hours and weekends was requested by ABC Corp but remains unpaid.
• Business relationship ended suddenly without following contract termination rules.
• Website hosting issues were caused by ABC Corp's delays and DNS control, not by IT Corp.
• ABC Corp's claims of damages and overbilling are exaggerated and unsupported.
• ABC Corp sent a baseless and inflated payment demand of $120,000 to avoid paying what they owe.
• IT Corp is open to solutions including discounts, payment plans, or writing off the balance to avoid costly litigation.

Side 2 (ABC Corp)

• They were dissatisfied with IT Corp's service quality, particularly website availability.
• Website downtime caused financial harm to ABC Corp.
• Some invoices are too high, incorrect, or include excessive hours not fully approved.
• A consultant recommended retroactive price reductions in August 2023.
• They claim damages justify withholding payment and assert IT Corp owes them money.
• They dispute the amount IT Corp claims is owed and sent a $120,000 payment demand.

4. Contradictions and Evidence Gaps

• Disagreement on whether payment was owed starting November 2023 despite continued service.
• Conflicting views on approval and legitimacy of extra hours and weekend work billed.
• Dispute over whether contract termination followed agreed rules; ABC Corp has not addressed this directly.
• Contradictory claims about responsibility for website downtime after service period ended.
• Disagreement on accuracy and fairness of invoices and billing amounts.
• ABC Corp's consultant's retroactive price reduction recommendation is not addressed by IT Corp.
• Disputed payment demand amount and justification between parties.
• Insufficient data on detailed contract terms, communications, and exact timeline of events.

5. Subjects Overview

Factual Issues

• Whether payment was owed for services and extra hours after November 2023.
• Contract termination procedures and adherence to agreed terms.
• Responsibility for website downtime and hosting migration delays.
• Accuracy and approval of invoiced amounts and extra hours billed.
• Validity and basis of ABC Corp's payment demand and damage claims.

Perception-Based Issues

• Feelings of unfair blame and power imbalance expressed by IT Corp.
• ABC Corp's mistrust regarding service quality and billing transparency.
• Emotional impact of sudden termination and accusations on both parties.

Issues Requiring External Verification

• Contract terms and termination clauses.
• Consultant's assessment and recommendations regarding pricing.
• Technical analysis of website downtime causes and DNS control timing.
• Verification of invoiced hours and approvals.

Issues Potentially Solvable in Mediation

• Negotiation of payment amounts, including possible discounts or payment plans.
• Clarification and mutual understanding of contract termination and service expectations.
• Addressing perceptions of fairness and power dynamics through communication.
• Exploring options to avoid costly litigation and reach practical resolution.

6. Mediator Questions

• [Joint] Can both parties clarify the contract termination terms and whether they were followed?
• [Joint] What evidence supports each side's claims about invoiced hours and approvals?
• [Joint] Can technical experts verify the causes and timing of website downtime and DNS control?
• [Joint] What documentation exists regarding the consultant's recommendations and ABC Corp's acceptance?
• [Private] To IT Corp: How do you view the power imbalance and its impact on negotiations?
• [Private] To ABC Corp: What are your main concerns about service quality and billing transparency?
• [Private] To both: What are your priorities and limits regarding financial settlement options?