When dealing with other businesses, clients or employees, there always exists the chance of a dispute. A good business owner knows how to avoid them, but also knows that some are unavoidable.
Thus, it is crucial to prepare yourself for eventual disputes by knowing how to handle them. What options do you have? What works best for which situation?
Arbitration and mediation
FINRA discusses some of the options for dispute resolution available if you do not wish to pursue litigation. They include mediation and arbitration. Mediation involves a mediator, or a neutral third party. They help you resolve your dispute by acting as referee. The bulk of the work rests with you and the other parties involved. A mediator cannot make a decision about your case for you. They can only offer suggestions and ensure everyone has their voice heard.
Arbitration leans closer to litigation. An arbitrator listens to everyone present their side of an argument. With the evidence and testimony, they make a decision. All parties must abide by this decision. But you do not need to set a court date or see a judge when contending with an arbitrator. It saves time and money while providing a secure decision.
Litigation is what most people think of first and it involves taking the other party to court. A judge hands down a final decision. But since you need a court hearing, this option often costs a lot of time and money.
If you are currently facing a business dispute and want to know more about your options, consider contacting a legal professional. They can help you decide what move may suit your case the best.