Business disputes occur all the time in California. Sometimes, they can be resolved quickly and easily, but other times they can drag on for months or even years. Arbitration and mediation are two of the most effective business dispute resolution methods, and there’s a good reason why.
How does arbitration work?
Arbitration is a process in which two parties agree to have their dispute resolved by an impartial third party, known as an arbitrator. The arbitrator hears both sides of the story and makes a decision that is binding on both parties. This can be a quick and effective way to resolve a business dispute without going to court. In business disputes, arbitration is ideal when both parties want to keep the dispute confidential and avoid bad publicity.
How does mediation work?
In this case, the two parties agree to have their dispute resolved by a mediator. The mediator is a neutral third party who helps both sides come to an agreement. This is different from arbitration, where the arbitrator makes a binding decision.
In workplace mediation, both parties have to agree on a resolution before it can be implemented. This can be a great option if both parties want to maintain a good relationship and avoid going to court.
Why are these methods better than litigation?
First, they are usually quicker and cheaper than going to court. Second, they can be confidential, which is important in business disputes. Third, they allow both parties to have a say in the outcome of the dispute. Finally, these methods can help preserve relationships between parties, which is often important to avoid business disputes in the future.
There are many more benefits to using arbitration or mediation to resolve business disputes. If you’re involved in a business dispute, consider arbitration or mediation as an alternative to going to court.