When you have a business dispute, the priority is often getting it resolved so that the business can move on normally. There are several ways that this might happen. In some cases, you might be able to work something out with the other party without any assistance. You may have to turn to other options if you can’t work things out.
Some business owners don’t want to have to go to court to resolve these types of issues. There are instances in which mediation or arbitration might be appropriate. These options are known as alternative dispute resolution methods, and they are often faster and more cost-effective than going through a trial.
Mediation is a non-binding process. You and the other party work with a neutral third-party mediator who helps facilitate productive discussions that work toward a resolution.
Arbitration occurs when you and the other party present your case to a panel of arbitrators. In most cases, there are three people on the panel. They come to a decision about the matter. This is usually a binding process, so both parties must abide by the terms the arbitration board sets.
One benefit that businesses usually appreciate about these alternative dispute resolution options is that they’re confidential. This leaves both sides able to speak freely about the matter at hand. Of course, everyone involved will have to agree to keep everything confidential.
It’s best to discuss these options with your attorney if you have a business matter that you feel might need mediation, arbitration or a trial. This gives you the opportunity to discover how each option might impact your company.