When faced with a business dispute, you have several options when it comes to how you want to handle them. Litigation serves as one of the most well-known options, but it is not the only possibility available to you. In fact, it might do you a disservice in some cases.
So what can you do if you decide you want to hold off on litigation for the time being? What options can you look at instead?
The benefits of mediation
FINRA takes a look at some of the other options you may have to settle business disputes if you do not wish to pursue litigation immediately. Two of the primary options include arbitration, which serves a similar purpose to litigation, and mediation.
Mediation differs in many ways and serves as a good option if you think you could reasonably work out your disagreement largely on your own. Thus, it is not necessarily the best choice if you are dealing with high tension or large amounts of assets.
Mediation involves the use of a neutral third party – the mediator – to assess and guide all parties through a civil discussion until you reach an agreement on what to do. The mediator has no legal power, but they can referee the discussion to keep everyone on task and ensure arguments do not boil over.
What about arbitration?
Arbitration, on the other hand, has more structure. An arbitrator serves a similar role as a judge, listening to all sides present their story and making a legally binding decision based on that. However, you get to skip the hearing process, saving time and money.
Each option has its own benefits and drawbacks, and you may want to seek the opinion of legal aid before making your choice.