As a business owner, you understand that managing your business relationships is one of the best ways to ensure you keep a healthy, flourishing business thriving. But of course, you cannot get through the entire lifespan of a business without having even one single dispute.
Thus, it is important to understand how to deal with these disputes as they occur. Should you go for litigation right away to nip these problems in the bud? Or is it more important to preserve your business ties in whatever way you can?
FINRA discusses two options you may wish to try before leaping to litigation. These alternative dispute resolution methods are arbitration and mediation. Arbitration holds the most similarities to litigation, with an arbitrator also holding similar power and responsibilities as a judge. Arbitrators listen to all parties present their sides of an argument, making a decision at the end that legally binds the parties into carrying it out. However, you do not need to set a court date, which saves you money and keeps your information away from prying public eyes.
Mediation works best if your dispute is something you think you could work through with just a little outside help. Mediators do not have the power that arbitrators or judges do. They will preside over your meeting and ensure that all parties get the chance to speak, offering suggestions and help from their unique perspective.
In either case, you want to wait before going for litigation. After all, taking someone to court will almost certainly end that business tie, which can ultimately do more harm than good.