California business owners like you must prepare to face disputes in the future. Even if one never happens, it is good to not get taken off your guard. This means looking through dispute resolution methods available to you. 

Litigation is one of these methods. In fact, it is the most well-known of them. But this does not mean that it is the best option for you. 

What is litigation?

The Balance looks at the difference between arbitration and litigation. Litigation is a more classic form of handling disputes. This is what people mean when they refer to “taking someone to court”. It involves going to court and having a judge preside over your hearing. All parties present their side of the argument. The judge then makes and hands down a decision. This decision is a binding one. 

Why is litigation such a risk?

The finality of a judge’s decision makes this a good option if you are dealing with a high stakes, high asset case. But there are plenty of downsides for business owners, too. For example, litigation often burns bridges. Taking someone to court is often interpreted as a very volatile act, after all. Your case gets published in public record, too. This means that anyone who decides to work with you in the future has access to it. 

The process is also time consuming and expensive. Unless you are fighting for a large amount of assets, you may not find it worth your time. Instead, you may want to consider an alternative method of resolution. They can help you solve your disputes without the same issues litigation poses.