Why More Companies Are Turning To This Alternative Dispute Resolution Method
Owning a small business can greatly help the community, as the small business creates new opportunities and helps the state in terms of more taxes and employment opportunities. Small businesses have the highest growth rates across the country.
However, small conflicts can always hinder the progress and growth of your business. For example, going into litigation with anyone can waste valuable time and money you’ve worked very hard to earn.
As a small business owner, you should always focus on alternative dispute resolution methods rather than going into litigation.
Mediation and arbitration are two of the best methods for resolving disputes. No matter how complex your dispute might be, it can help your business recover from it by achieving a reasonable conclusion to the conflict.
The best part is that the mediation and arbitration process does not require much time or money and can be easily done outside the courtroom. All you have to do is engage a mediator or arbitrator, and you will be on your way to resolving the dispute.
Before going into depth about the mediation process, let’s first look at alternative dispute resolution and its different types.
Types Of Alternative Dispute Resolution
Since your small business has just started, you should do your best to keep it growing and avoid anything hindering its progress.
Litigation can be costly, and resolving your conflicts through litigation can take away a lot of time and money from your business, which can effectively jeopardize it in the long run. Here are two methods:
1. Mediation: First Type
Mediation is a flexible form of dispute resolution. In this method, the outcome of the whole process is in the hands of the parties involved.
A mediator, a neutral third party with knowledge of the legalities involved in mediation, is involved in the process. The mediator helps both parties agree on certain points and settle their disagreements outside the courtroom.
If you are a small business and do not want to lose contact with the other party, you should go into mediation to save time, money, and your business connections.
2. Arbitration: 2nd Choice
Arbitration is a legal form of alternative dispute resolution. Just like a mediator is involved in the mediation process, the arbitrator is in charge of the arbitration, and the outcome of the whole process is in their hands.
Both parties must provide the arbitrator with their evidence and tell their story. After hearing all the legal points and looking at the evidence, the arbitrator has to give a binding judgment. Arbitration does not necessarily require both parties to sit together and discuss the terms of the agreement. It is just like a courtroom hearing but much more private.
Benefits Of Mediation For Businesses
Although mediation and arbitration are both considered successful alternative dispute resolution methods, mediation is usually preferred as it provides the parties more flexibility.
Moreover, mediation is a sped-up process and saves both parties a lot of time and money.
In the end, the mediation process is not legally binding if the parties do not agree to settle their dispute outside the courtroom.
Here are the most considerable benefits of mediation for businesses.
- Time-Saving: Since small business owners already have limited time, they must settle their conflicts as soon as possible to resume business operations. When the parties are involved in mediation, they can select the mediation sessions according to their own schedule, and there is no hurry.
- Privacy: In alternative dispute resolution, the privacy of both parties is saved. This contrasts with litigation, in which court trials are always public. This allows business owners to keep the mediation process private and avoid their business details from going public. This offers great help to save the image of your business.
- Cost-Effective: Alternative dispute resolution, and especially mediation, is way less costly as compared to litigation, which also involves heavy fines and delayed hearings. Conflict resolution is fast, less costly, and doesn’t involve the courtroom. You won’t have to pay court fees or suffer from any other related costs when you choose mediation for conflict resolution.
- Flexible Process: In alternative dispute resolution, the parties don’t have to follow the court’s schedule and can instead choose to set up the mediation date and time by themselves. The process is very flexible, and the parties can control everything according to their preferences.
- High Success Rate: Mediation for dispute resolution is one of the most effective types of ADR used around the globe. Most business disputes are settled in the courtroom with the help of mediation. This gives the involved parties some privacy, and the business owners can set up mediation sessions according to their schedule while keeping their schedule undisturbed.
Court hearings and related processes can take months or even years to complete when a classic case is filed. This is why experts suggest going into mediation early in the dispute or even right after the case is filed. This always helps speed up the process, and both parties can settle their dispute without wasting time and money.
Contact any business law attorney, and they’ll suggest mediation as their ultimate choice regarding alternative dispute resolution. No business issue can’t be settled with mediation. You must hire a competent mediator and convince the other party to go into mediation rather than choosing litigation in your dispute. This way, you can keep your business safe while settling disputes privately.