It is not unusual for your business to have a dispute with an employee, vendor or another business. Before resorting to litigation to resolve the issue you may want to consider two forms of alternative dispute resolution: mediation and arbitration.
Mediation is a way to resolve a business dispute without going to court. A neutral mediator oversees the mediation process, but it is ultimately the parties to the dispute who engage in discussions with each other and with the mediator until they come to a resolution. Mediation can be quicker and less costly than litigation. It is private and gives both parties the ability to reach a resolution they are satisfied with.
Arbitration is another way to resolve a business dispute without going to court. It is more formal than mediation but less formal than litigation. Sometimes a contract requires the parties to arbitrate disputes.
Through arbitration, an arbitrator or an arbitral panel oversee the proceedings. The parties can argue their case and present evidence. In the end, the arbitrator will make a decision. The arbitrator’s decision is often binding.
Consider your options before going to court
Consider all of your options before going to court. Chances are you can engage in alternative dispute resolution processes that lead to a good outcome for your business dispute. This way, you avoid the time and expense of a trial so that you can focus on what is important — running your business effectively and efficiently.