Most commercial lease disputes can be resolved without going to court, often more quickly and at a lower cost, by using alternative dispute resolution methods such as mediation or arbitration. Because commercial leases create long-term business relationships, disagreements are common, and in Pennsylvania, many leases require some form of ADR before a lawsuit can be filed. Understanding how these options work allows you to protect your business interests, limit disruption, and choose an approach that fits both the dispute and your broader goals.
Common Commercial Lease Disputes We See in Pennsylvania
Commercial lease disputes usually arise from day-to-day operational issues rather than dramatic lease failures. Some of the most frequent conflicts include:
- Maintenance and repair obligations, especially in triple-net leases or older properties
- Rent increases and operating expenses, including CAM charges and tax pass-throughs
- Lease termination and early exit, often tied to default claims or business changes
- Use and exclusivity clauses, when a landlord or neighboring tenant affects your operations
These disagreements can escalate quickly if they interrupt cash flow or business operations. ADR offers ways to address them before positions harden.
Mediation for Commercial Lease Disputes
Mediation is a non-binding process in which a neutral mediator helps both sides work toward a voluntary resolution. The mediator does not decide who is right or wrong. Instead, the focus is on problem-solving.
Mediation often works well when you want to preserve a working relationship with the landlord or tenant. It allows flexibility, creative solutions, and open discussion that would not happen in court.
Key features of mediation include:
- Informal setting with confidential discussions
- Control stays with you, since no outcome is imposed
- Lower cost and shorter timelines than litigation
If both parties are motivated to reach an agreement, mediation can resolve issues like disputed repairs, temporary rent relief, or modified lease terms efficiently.
Arbitration for Commercial Lease Disputes
Arbitration is more structured than mediation and results in a binding decision. An arbitrator, or panel, hears evidence and arguments and then issues an award, similar to a private judge.
Arbitration can be useful when the dispute centers on a clear contractual issue and you want finality without a public court case. Many commercial leases require arbitration for specific types of disputes.
Arbitration typically involves:
- Limited discovery compared to court
- A faster schedule than traditional litigation
- A binding decision that is difficult to appeal
While arbitration is more formal and costly than mediation, it is usually still more efficient than a full lawsuit in Pennsylvania courts.
Mediation vs. Arbitration, Which Is Right for Your Lease Dispute?
Choosing between mediation and arbitration depends on your goals and the nature of the dispute. Mediation works best when communication is still possible and business continuity matters. Arbitration is often better when you need a decisive ruling on lease interpretation or alleged default.
We often help clients evaluate lease language, business risk, and leverage before recommending an approach. In some cases, mediation first, followed by arbitration if needed, provides the best balance.
How ADR Compares to Court Litigation
Court litigation can be expensive, slow, and public. Commercial lease cases may take years to resolve, with ongoing legal fees and uncertainty along the way. ADR usually limits these risks.
Alternative dispute resolution can:
- Reduce legal costs and time away from your business
- Keep disputes private and controlled
- Preserve commercial relationships that still have value
For many landlords and tenants, avoiding court also means avoiding disruption to customers, lenders, and partners.
Why Legal Guidance Still Matters in ADR
Even though mediation and arbitration are alternatives to court, they are still legal processes. Lease terms, notice requirements, and Pennsylvania contract law all shape your rights and obligations.
At Jones, Gregg, Creehan & Gerace, we help you prepare for ADR with a clear strategy. That includes reviewing your lease, identifying pressure points, and positioning you for a practical outcome rather than a drawn-out fight.
A Practical Path Forward for Lease Disputes
Commercial lease disputes do not have to derail your business or force you into court. With the right strategy, many conflicts can be resolved efficiently through mediation or arbitration, while protecting ongoing operations and business relationships.
If you are dealing with a commercial lease dispute in Pennsylvania and want to understand your options, Jones, Gregg, Creehan & Gerace can help you assess your lease, evaluate ADR strategies, and determine the most effective path toward resolution. Contact our firm to discuss your situation and take the next step toward resolving the dispute.