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Options for settling business disputes out of court

On Behalf of | Apr 8, 2022 | Business Law |

It’s normal for company owners to end up having disputes in the course of doing business. The best option for your Florida business is to resolve those issues out of court using alternative means.

What is alternative dispute resolution?

Alternative dispute resolution is a method of resolving a business dispute that doesn’t involve going to court. It relies on a different means of settling the dispute instead of traditional litigation, which can be costly and lengthy. If you own a business and have a dispute involving some aspect of the business such as a contract, both parties must agree to alternative means to settle it.

What are your options for resolving a business dispute out of court?

Mediation is one of the most popular options for resolving a business dispute out of court. With this method, you and the other party or parties involved in the issue meet with a neutral, third-party professional mediator to discuss the matter. You get the opportunity to negotiate a solution that works for all parties. The mediator is not there to take sides but rather serves as a third party to help the parties come to a fair agreement.

The parties meet along with their attorneys and the mediator in a few sessions. Mediation is often best for coming to a solution when the parties are willing to work together.

Arbitration is another good method for resolving business disputes. An arbitrator hears the evidence surrounding the dispute and comes to a conclusion about it. The arbitrator is a neutral third party who reviews all the facts and issues their opinion on the matter at the end. The parties must agree on having an independent arbitrator make the decision for them. This is a formal type of proceeding that doesn’t involve a lengthy court process. Many people in a business dispute opt for arbitration to avoid possibly taking the case to court.

Like mediation, arbitration is cheaper and takes less time than a traditional court proceeding. Both alternative dispute methods are also kept private, which benefits your business as the proceedings are never made public.

If you have a business dispute, mediation or arbitration might be much better for resolving it than litigation. You’ll likely save time and money by going this route.