Business disputes usually occur between two business entities that have done business with each other but end up disagreeing on the terms of their contract or whether the contract has been truly fulfilled. Business disputes can involve disagreements over property, billing, services rendered, information sharing, and many other disagreements that can occur between businesses. Any person involved in a business dispute should have legal representation to make sure that they are well-protected and not taking advantage of during the process of resolving the dispute. In many cases, contracts between businesses have a clause stipulating that if a dispute should occur, then the two businesses will go to arbitration or mediation instead of going immediately to court.
What is Arbitration and Mediation in Business Disputes?
Arbitration and mediation are the two most common forms of Alternative Dispute Resolution (ADR). ADR methods are used to settle disputes between parties without having to resort to litigation, which is a courtroom process that can prove to be long, exhausting, and very costly. These are both methods of dispute resolution that will keep your affairs quiet and ideally find a resolution much faster.
Arbitration is an out-of-court method of dispute resolution in which a third party, called the arbitrator, sits with the two parties disputing, listens to each party’s position on the dispute (usually argued by their lawyers), and then makes a final decision in favor of one of the two parties. The arbitrators decision is a binding decision with legal authority that usually cannot be appealed.
Mediation is similar to arbitration in that it involves a third party overseeing a dispute between two parties. The difference is that the mediator, unlike an arbitrator, does not have the power to make final and legally binding decisions over the dispute. The mediator assists in the dialogue between the two disputing parties and helps them come to an agreement on their own. In the end, the two disputing parties must find a solution themselves, and the mediator is an objective third party that helps them to do that.
Make Sure You Have Representation for Any Business Disputes
If you are involved in a business dispute, make sure that you have legal representation whether you are going into arbitration, mediation, or courtroom litigation. In any of these situations, an attorney will protect you and make sure that you aren’t taken advantage of. Roybal-Mack & Cordova, P.C.’s team of expert business attorneys is here to resolve your business disputes with your interests in mind.