A business partnership is not unlike a marriage in that disputes and disagreements are going to arise from time to time. However, not every partnership dispute has to lead to a drawn-out courtroom battle. Sometimes, you may be able to explore other methods of dispute resolution that may help you keep your business or personal relationship intact.
Your options as far as settling your partnership dispute may vary based on the type of business structure your entity has. However, you may be able to come to an agreement or resolution by using one of the following three dispute resolution methods.
1. Negotiation
Before engaging in mediation or litigation to settle your business dispute, consider trying to negotiate. Keep in mind that both sides may need to make sacrifices during negotiation. However, if you are able to compromise, you may be able to settle your dispute while causing minimal disruption to your business.
2. Mediation
In mediation, both parties sit with an unbiased mediator who hears you both out and then offers an opinion about how to settle the matter.
3. Litigation
Sometimes, matters become too contentious for you to solve through negotiation or mediation, leaving you with limited options. In this scenario, you may need to litigate your dispute and have a judge issue a ruling on it.
While the business structure is an important consideration when handling partnership disputes, so, too, is whether you want or need to preserve your business relationship moving forward. If so, you may want to give serious thought to negotiating or mediating before litigating.