A Forward-Thinking Firm

What are alternative dispute resolution options?

On Behalf of | Aug 30, 2021 | Firm News |

As a business owner, you want to avoid disputes as well as you can, but you should also keep in mind that you cannot avoid every single disagreement or argument that comes your way. Instead of focusing on that, focus instead on figuring outsmart and effective ways to handle disputes when they arise.

This means keeping alternative resolution methods in your back pocket. They serve a good purpose for many different reasons, and they can even help preserve your business ties.

Arbitration and mediation

FINRA looks into some of the most popular alternative methods to litigation: arbitration and mediation. Arbitration is closer to litigation in that an arbitrator will listen to all parties present arguments and evidence. After review, they will hand down a legally binding decision that everyone must follow. However, you save time and money since you do not need to go through the court case process.

A mediator does not hold this power, but they can offer unique third-person perspective opinions and suggestions. They also act as a referee for your discussion, making sure nothing gets too out of hand and ensuring all parties have their say. This option best serves you if you already think you could work things out with minimal interference.

Why lean on alternative resolutions?

Both options have the advantage of being softer and more palatable than litigation. This is crucial when it comes to preserving business ties, which you want to do as often as possible. After all, every business thrives on the ties created between partners, employees and customers. You want to keep your relationships as healthy as possible for an equally healthy business.