Florida business owners like you may run into disagreements with business partners. No one wants to end up in a dispute. But it is a part of owning a business. Handling disputes is part of being responsible for your business endeavors.
If you do run into an issue like this, it is important to have dispute resolution methods on hand. Not every method will work for every situation. Because of this, you should have multiple options. Two of these options include arbitration and litigation.
When does litigation come in handy?
The Balance looks at arbitration versus litigation, two different dispute resolution methods. Litigation is what most people think of when they think of “taking someone to court”. This is the most formal form of resolving a dispute. You bring you case to court. A judge hears all sides present their arguments. Then, the judge makes a final, legally binding decision.
This option is good if you do not think any party can work through the dispute on their own. Cases where litigation is most useful often involve large assets or big projects. This is because litigation is both costly and time consuming. To many, it is not worth the cost unless the stakes are high.
Is arbitration a better choice?
Arbitration is less strict than litigation. It involves an arbitrator listening to your case and handing down a decision. This decision is still legally binding. But you do not have to go through the hoops of seeing a judge. This also allows you to keep your personal business out of public record. In general, it is a better option if you believe the business relationship is salvageable. It may benefit you if you do not want to burn bridges.