When you get involved in a business dispute, you do not need to jump to litigation immediately. In fact, you may benefit more from looking into alternative methods of dispute resolution.
What are your options if you decide to take an alternate route? And what are the benefits you gain by opting out of more traditional litigation?
Arbitration and mediation
FINRA discusses two of the most popular alternative dispute resolution methods. They include arbitration and mediation. Arbitration is one step shy of litigation. An arbitrator fills a similar role to a judge. They listen to everyone present their side of a case. Based on evidence and testimony, they hand down a legally binding decision.
Mediators act more as referees. If you decide to mediate instead of arbitrate, the bulk of working through your dispute falls on your shoulders. The mediator is there to ensure everyone can say their share. They may step in if arguments get out of hand. They can also offer a third party perspective when giving advice or opinions. But in the end, you and the other parties must decide what to do on your own terms.
How can mediation help?
Mediation is an attractive option to business owners for this reason. It gives you and the other parties a chance to work through your grievances together. This may allow you to salvage your business relationship. In the world of business, your relations keep you afloat. You always want to leave a situation with as few burnt bridges as possible.
You can always seek the advice of a legal expert if you want a professional opinion on how to handle your dispute. From there, you can decide what option works best for your current situation.