Disputes can arise in the business world for a variety of different reasons. It might be a broken contract, a shareholder disagreement, or a partnership dispute. Whatever the case is for your business, it’s always important to keep in mind all of the options you have for resolving the dispute. Not every business dispute has to go to litigation, which is great news for your company. Litigation can get expensive quickly and doesn’t offer you direct control over the resolution of the dispute. There are some alternative dispute resolutions you can look into that just might save you a lot of time and money.
There are typically two alternative dispute resolutions that businesses look into, mediation and arbitration. With mediation, you will resolve the dispute with the help of an independent third party mediator. The mediator will work hard to help you reach a mutually beneficial agreement. Arbitration also involves a neutral third party, known as an arbitrator. The main difference is that in arbitration, the decisions are usually legally binding.
Benefits of Alternative Dispute Resolutions:
1. Saves You Time and Money
Whenever you are dealing with a business dispute, you are dedicating time and energy towards getting it resolved. This takes time away from other business activities you could be focusing on. With an alternative dispute resolution, you can bypass the traditional litigation process. That means you can save a ton of time on the legal process and paying for legal fees. Both arbitration and mediation are streamlined approaches that will get the dispute resolved as quickly as possible instead of waiting on things to get resolved in court.
2. Added Privacy
When you opt to resolve a business dispute through mediation or arbitration, you get to keep things private. Sometimes you don’t want the entire business world to know you are dealing with a significant business dispute. With litigation, the contents of the dispute are typically made public. That can have an impact on your current and future business dealings. Alternative dispute resolution will provide you with a way to get things figured out in a private way. This is a huge benefit for many businesses who don’t want their dispute to be exposed to the public.
3. Resolution is in Your Hands
When you have a business dispute that gets resolved through litigation, the resolution will be up to the court. That means you might not get to decide what ultimately happens. With alternative dispute resolution, you have more control over the decisions that occur. You can work with the mediator or arbitrator to reach a mutually beneficial conclusion to the dispute. That extra control can make all the difference in the world.
If you are dealing with a business dispute, keep in mind that things don’t necessarily have to go to court. There are plenty of benefits to be had from alternative dispute resolution. Reach out to Derryberry & Associates LLP if you need legal advice about resolving a business dispute or would like to learn more about alternative dispute resolution.