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Alternative methods for settling business disputes

Business owners often feel they need to walk on eggshells. That's because the potential for lawsuits are everywhere. Whether it's over employees, binding contracts or accusations from customers, litigation can leave businesses financially battered and bruised.

Because of these risks, many businesses are now turning to alternative dispute resolution as a more timely and affordable method of handling disagreements.

Litigation can damage finances and relationships

No matter how a conflict starts, settling matters in the courtroom can be stressful and expensive for both parties. As court proceedings can take a long time and the attorney fees increase, disputants may end up feeling more resentful of one another after proceedings are done.

Looking at other options

Alternative dispute resolution comes in several forms, but the two primary methods are mediation and arbitration. In mediation, parties talk out their disputes with a neutral moderator in hopes of forming an amicable agreement. In arbitration, disputants express their frustrations about one another with an arbitrator. Once the arbitrator gathers information from both parties, they can present an award based on the evidence.

Benefits of ADR

These are some advantages of using alternative dispute resolution:

  • Saves the business time by avoiding long hours in the courtroom.
  • Saves the business money as mediation and arbitration costs can be more affordable.
  • It can give businesses more control over the case and outcome of the dispute instead of leaving it up to a judge.
  • It can save the business from damaging relationships vital to its operation. However, the circumstances may differ based on the dispute.

ADR can save businesses time and money

Businesses thrive on a combination of sweat equity, relationship building and profits. When businesses use a less hostile approach to settle disputes, they can reach an agreement and keep operations running smoothly. If you're a business and are currently considering litigation, talk to an attorney to see if alternative dispute resolution works for your situation.

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