When dealing with disputes between business partners, it is important to understand what your potential options are. Litigation is one possible route you can traverse, but you can also look into alternative methods of resolving your dispute.
Arbitration falls into this category. But what is this method of resolution, how does it work, and most importantly, will it serve your specific needs?
Arbitrators and their role
FINRA discusses arbitration, as well as other methods of alternative dispute resolution. Arbitration actually holds a lot of similarities with litigation. An arbitrator has similar levels of power to a judge and serves a similar purpose. They listen to all parties present their evidence and their sides of the argument. Then, based on what they hear, they make a decision. This decision holds legally binding power, i.e. all parties must then abide by it.
Arbitration vs. litigation
Arbitration has several differences that set it apart from litigation, too. First, you do not need to go through a jury trial, which saves time. Next, you do not need to have a bench trial presided over by an official judge, which saves both time and money. Since you do not go through a typical trial, your information will not remain available to the public. You get to keep your private business affairs exactly as they should be: private.
Of course, arbitration is not the only option you have for dispute-solving. You can also look into mediation, which works well for those who feel they need just a little extra guidance while working through their own problems. You can consult with a legal expert to decide what option will serve you best.