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Is an alternative to litigation right for your business dispute?

When running a business, you may find yourself having to deal with different conflicts on a daily basis. Though many of those conflicts may be easily resolved with discussion and explanation, other issues may need a more formal approach. Because you undoubtedly want to ensure that your company remains protected from any problems that could cause unnecessary complications, finding the best way to address serious problems may work in your favor.

In some cases, you may have an issue that requires legal attention to remedy. At first consideration, you could think that courtroom litigation is the only option available for addressing the conflict. However, certain alternative dispute resolution methods, like mediation or arbitration, could better suit your particular circumstances.

What is litigation?

Though many people know that litigation is often necessary to resolve business disputes, they may not fully understand what the process entails. With litigation, your case will go to court and potentially face drawn-out and expensive legal proceedings. This process will typically continue until a judge or jury comes to a conclusion regarding how the issue should be addressed. As a result, you may feel that you have less control over the situation than you might like.

What is arbitration?

Arbitration is an alternative to litigation that could help you address your business conflict. This process involves a panel of arbitrators who hear the case and give their opinions on possible outcomes. Typically, you may choose an arbitrator, and the opposing individual chooses an arbitrator as well. Finally, the two chosen individuals select a third arbitrator. Together, the three act as the decision-making panel. Generally, the majority vote wins the decision. These decisions can be legally binding.

What is mediation?

Another alternative dispute resolution method is mediation. This method usually involves a single mediator to hear both sides of the issue. The mediator does not necessarily make judgments on the issues but helps to keep discussion and negotiation moving forward. During this process, you can have more control over the resolution process, and generally, both sides come to satisfying outcomes. Once decisions are made, you and the other party can create an agreement to be approved by a judge.

The particular circumstances of your business dispute could impact which type of resolution method you choose to utilize. In some cases, even if you start out with an alternative method, you may still find yourself heading for litigation if the outcomes are not satisfactory. You may wish to gain more information on your options to determine what route could best suit your needs.

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