When going through a dispute either with a partner, a contractor, or anyone else, the question of how to handle the issue will undoubtedly come up sooner rather than later.
Though many people associate business disputes with litigation, is this the only answer?
The problems with litigation
FINRA discusses several alternative methods of resolving disputes, including arbitration. Arbitration serves as a good substitute for litigation because it helps save time and money. On top of that, it allows for a business to keep their matters private. Taking a case to court means that all of the details will become public knowledge due to the fact that court trials all get recorded. Anyone can request a file with details of the case and learn all about it.
How arbitration works
Through arbitration, it is instead possible to have someone else rule on a case without any of the additional fees or the lack of privacy. An arbitrator listens to all parties present their side of the story and evidence. They then make a final decision about what the parties must do, which they have a legal obligation to abide by.
In short, it offers the same sort of structure and system as litigation, without the aforementioned negative points.
However, there are some situations in which litigation is necessary. Arbitration requires some degree of cooperation or agreement between all parties, which does not always happen. If large sums of money or assets are involved, then a case is more likely to go to court, too.
In situations like that, it is best to prepare for the case as well as possible.
