What Are The Various Business Dispute Resolution Methods?
If you own or operate a business, chances are good you’ll wind up in a dispute. What happens next? Well, you have options. One of them, of course, is to file suit. But avoiding prolonged courtroom time can save you a considerable amount of money. That’s why it’s worth the effort to look into alternative dispute resolution methods. In this article, the business litigation attorneys at Kohl & Cook Law Firm, LLC, will discuss alternative dispute resolution methods and how they could work for you if you’re in a business dispute.
Negotiation
Every dispute involves some element of negotiation. As part of the litigation process, you will likely meet with the opposing parties frequently.
- Pros – Negotiation gives you more direct control over the proceedings. Successful negotiation tends to be substantially cheaper than most other resolution methods.
- Cons – If one party is significantly more powerful than the other, the lack of third-party oversight can lead to unfair outcomes. Negotiation can also end in a stalemate, which wastes time.
Negotiation is appropriate for parties who are equal in power.
Mediation
Mediation is a form of guided negotiation. Both parties work with a neutral third-party mediator who hears both sides and provides a unique solution to the issue.
- Pros – Mediation is more collaborative than litigation. It is also completely confidential. In many cases, it serves as the best way to preserve relationships in a dispute.
- Cons – A mediator is not a judge. Mediation is not binding. Both sides must be willing to accept the mediator’s solution.
Mediation works best when there is a power imbalance between the two parties. Mediation is considered the most amicable dispute resolution method. It can help businesses preserve important relationships after a dispute.
Arbitration
Arbitration is similar to mediation insofar as the arbitrator acts as a neutral third party. The major difference is that both parties sign an agreement to uphold whatever the arbitrator decides is the best course of action. So, the arbitrator does function like a judge.
- Pros – All discussions in arbitration are confidential. Having a binding decision means having a faster resolution.
- Cons – Arbitration is considerably more formal and less flexible than mediation. There is a limited opportunity to appeal a decision that goes against your interests.
Arbitration is an ideal choice for parties who want to reach a resolution quickly and quietly.
Minitrials
A minitrial is a private trial that is held by a private judge, which can allow both parties to get a realistic view of how their case would play out in court.
- Pros – Structuring the case like a trial gives both sides the ability to see how the case would likely play out in court.
- Cons – While less expensive than going to trial, an outcome is not guaranteed. In some cases, minitrials may be test runs for a full trial.
Minitrials are not appropriate for the majority of situations, are not cost-effective, but may be of some value to larger companies facing costly disputes.
Talk to a Columbus, OH, Business Litigation Attorney Today
Kohl & Cook Law Firm, LLC, represents the interests of businesses in disputes with other businesses, contractors, and employees. Call our Columbus business litigation lawyers today to schedule an appointment, and we can discuss your needs in more detail.
