When you are dealing with business disputes, you may have the false misconception that you need to turn to litigation right away. This is a costly and time-consuming endeavor, and in many cases, it is not even needed.
Instead, there are plenty of alternatives to litigation that you can explore. Each one has its own potential benefits and downsides.
FINRA examines popular alternatives to litigation. Two of the most well-known are mediation and arbitration. Mediation involves a mediator overseeing your discussion as you and the other parties work out an agreement on your own. They may offer guidance and will step in if things get out of hand, ensuring that tempers do not get out of control. They also ensure everyone has their say.
Mediation works best if you believe you can solve your issues on your own and simply need a little outside guidance to ensure that. A mediator does not have any ability to create legally binding arrangements, so you cannot rely on them if you need more help.
Arbitration is better if you need a little more structure. An arbitrator holds similar power to a judge in that they listen to you present your arguments and make a decision based on that. This decision is legally binding, which means all parties must abide by it. Despite the similarities to litigation, there are notable differences, too. For example, you do not need a court date, so you can save time and money.
In the end, the option that works for you depends on your individual needs. Consider consulting with legal help to decide which path to take.