When individuals or businesses face a protracted dispute, litigation may feel like the only option. If neither party compromises regarding their demands or perspective on the disagreement, a judge can help interpret the law, review contract clauses and settle the conflict.
However, going to court is often costly. Additionally, it can make details about business operations or interpersonal conflicts public record. People hoping to resolve matters privately or worried about the relationship damage that litigation could cause may want to consider alternative dispute resolution.
Some contracts require alternative dispute resolution
Contract clauses mandating mediation or arbitration are relatively common. Many successful companies want to avoid court cases whenever possible. They may require that employees or clients work to settle matters outside of court instead of litigating.
Both arbitration and mediation allow for amicable and private resolutions to disputes. Arbitration involves each party presenting their perspective, and the arbitrator reaches a determination on the disagreement.
Mediation is a more collaborative process, where the parties have a conversation facilitated by a neutral third-party mediator. Both mediation and arbitration are confidential, meaning that information disclosed during alternative dispute resolution does not become public record.
They can both offer much faster solutions for disputes, which can also help reduce the total costs incurred. Even in cases where an agreement with another party does not mandate alternative dispute resolution, it may still be a viable option. Many business leaders and individuals can settle their disputes outside of court with the right support.
Discussing alternative dispute resolution with a legal professional can help interested parties evaluate their options. Settling out of court can be an empowering and cost-effective solution that limits the lasting damage disputes cause to working relationships.