Resolving business disputes can be stressful, but it doesn’t have to be. Litigation is one of the options that people may use to resolve business disputes, but it’s not the only one available. In fact, litigation should generally be the last resort. Read on to learn about other methods.
Mediation is a negotiation session between two parties with a mediator present. The mediator is not a judge and does not make any decisions for the parties. This can be an advantageous option because it’s less expensive and often quicker than business litigation. It’s also a good option because it helps both parties come to an agreement on their own terms, rather than getting forced into something they don’t want by a judge or jury in court proceedings.
Arbitrators are third-party business professionals who hear arguments from both sides and then make a decision. Arbitration can be binding or non-binding depending on the agreement of the parties involved in the business dispute resolution process.
It’s important to note that arbitration is different than mediation because it does not require any negotiation between the business parties. An impartial business professional, the arbitrator, makes the business decisions.
Negotiation is the process of communicating back and forth in order to come to an agreement. This is often done between business parties, including family business parties, or with the help of a third-party such as a mediator. This option is often less expensive and time-consuming than litigation and arbitration, but it does require both business parties to be willing to come to an agreement.
If you’re involved in a business dispute, it’s important to understand that you don’t always need to go to court. Litigation, arbitration and mediation are all business dispute resolution options that can provide you with a clear business decision without having to face the stress of courtroom proceedings.