A business may face some sort of legal dispute during its operation. These kinds of disputes might catch business owners off guard, and they might realize they need some legal assistance to solve these complicated problems. Fortunately, there are a few dispute resolution options for businesses to choose from, and whatever they choose will depend heavily on their circumstances.
What Are the Three Kinds of Dispute Resolution for Businesses?
- Mediation: This type of resolution involves a neutral third-party, also known as a mediator. The mediator will work with both parties to reach some sort of mutually agreeable solution to the problem. This option is great for businesses that want a cheaper and faster resolution. However, it’s important to know that mediation doesn’t create a binding agreement, and either party could back out of the agreement at any time.
- Arbitration: This type of dispute resolution is sometimes seen in business contracts as the preferred resolution. Arbitration involves each party presenting proof and data to a neutral third party, which in this case is called an arbitrator. The arbitrator will then study this evidence and decide on the correct resolution for both parties. Arbitration can be binding, which means there is no appeal permitted for either side. Whatever the arbitrator chooses is the final decision.
- Litigation: Litigation can be considered as the most lengthy and complicated dispute resolution process, but it does have advantages over mediation and arbitration. Litigation will allow either party to summon witnesses, gather legal evidence, and cross-examine the other party. This is a great option if the business wants to seek monetary damages and believes the dispute needs to be put to an immediate stop in order to prevent any further harm. This resolution option should only be picked if one or both parties is completely unwilling to negotiate. Litigation can be expensive and take weeks, months or even longer to resolve.
The attorneys at Hecht Walker, P.C. can handle any sort of business litigation or other business disputes in the Atlanta area. Contact us today for a free consultation.