When your California business finds itself embroiled in some sort of dispute, it may hurt your company’s bottom line by taking time, money and attention away from its operations. In some cases, business disputes may prove long, expensive and complex. However, there are steps you might take to reduce how much time and money your dispute winds up costing you.
According to Harvard University, you may want to try to resolve your business dispute using alternative dispute resolution methods before taking the case to court. Many business owners find that they are able to resolve their business disputes using one of the following three methods.
It may benefit you to try mediation as the first step in solving your business dispute. When you mediate your dispute, you and your disputants work with an impartial mediator who hears all opposing sides. The mediator then recommends a resolution that is voluntary and non-binding in nature.
Arbitration is like mediation in that both options involve working with unbiased third parties. However, the main difference between a mediator and an arbitrator (and it’s an important one!) is that the arbitrator’s decision is legally binding and a mediator is not.
When mediation, arbitration or other alternative forms of dispute resolution fail, you may need to litigate your case to reach a resolution. This means you and your disputants must face off with one another in court to resolve your issue.
Some dispute resolution options give you more control or privacy than others. The method that may serve your needs most is going to depend on the type of dispute you face and how much control and privacy you wish to maintain while navigating it.