If you own a business, you know that disputes can and do arise. These disputes might involve partners, employees, clients or even a landlord, and they can stem from arguments over contract terms and fulfilment, personal rights, theft or other types of misconduct.
Despite the fact that business disputes are varied and may involve a wide range of parties, there are, in general, just a few options when it comes to resolving these disputes. Below, we examine these three types of dispute resolution methods.
In many cases, you can resolve your issue through mediation. This process involves both parties working together and with the help of a mediator to negotiate a resolution on their own. Mediation can be the fastest and most cost-effective method for resolving a dispute, as there are fewer legal formalities to observe.
Many business disputes are resolved through arbitration, as business owners are increasingly including arbitration clauses in contracts with consumers, employees and other parties.
Arbitration is a method of dispute resolution that both parties agree to. It involves an arbitrator (or panel of arbitrators) who will listen to both sides of a dispute, including witnesses, and make a decision. Broadly speaking, arbitration is more formal than mediation but less complicated than litigation.
This is often the last option when others like mediation have failed, or when other methods are not feasible. Litigation means the parties will go to court and argue their case in front of a judge and/or jury, who will then make a ruling. Litigation is often the most expensive option and can take much longer than other dispute resolution methods. But it can also result in higher awards, and there is the option to appeal, if necessary, which can be very valuable.
Whatever the method, legal guidance can be crucial when resolving disputes
Whether you go through mediation, arbitration or litigation to resolve a business dispute, having an attorney by your side can be essential. They can help you navigate the steps of each process, understand your rights and fight for a fair outcome.