Business conflicts of any kind can be highly disruptive and costly to resolve. Thus, if you are a business owner facing a dispute, any measures that can promote a faster, less expensive outcome can be worth looking into.
One option you may want to consider is arbitration.
What is arbitration?
Arbitration is an alternative to litigation. When parties arbitrate a business dispute, they can stay out of court and have more control over the legal process and outcome.
During arbitration procedures, a dispute goes before one or more neutral parties who will make decisions. The parties involved must agree to arbitration. They then select the arbitrators who will hear the case and make awards based on the facts presented during the hearings.
Arbitration is less formal than litigation in many ways. For instance, the rules regarding evidence are more flexible.
Arbitration is private and confidential and allows parties to resolve a dispute more efficiently and practically than going through litigation.
Is arbitration right for my business?
Determining whether arbitration is right for your case depends on several factors. Do you already have a signed arbitration agreement with the other party? Are both sides willing to participate? Have you tried to negotiate a settlement informally?
Based on your answers to these questions, you can better gauge whether arbitration is suitable for you or if a process like mediation or litigation will be more practical.
Making informed decisions
The method you use to resolve a dispute with clients, partners and others can have a tremendous impact on your business. Money, time and other valuable resources can be involved, making it crucial that you make informed decisions about how to proceed. Consulting an attorney can help you avoid costly missteps and do what is best for your company.