Businesses and Corporations: Why Choose Alternative Dispute Resolution?

Running a business is stressful. Chasing revenues, paying expenses, managing employees, and turning a profit are hard enough.  But when conflicts arise, they can threaten the operation of the business. Quick resolution of disputes is often necessary for the financial stability of the business.  Justice delayed in many cases may indeed be justice denied.

Two men having a business disagreement

Litigants must weigh the potential benefits of alternative dispute resolution (ADR) vs. traditional litigation when deciding how to resolve their disputes. ADR is a good option for businesses and corporations because it provides more privacy and control to the parties, and is less time-consuming than traditional litigation through the court system. ADR is a less stressful, more budget-friendly option that helps preserve the reputation and well-being of the business while keeping the proceedings out of the public eye.

Some litigants prefer mediation where, with the help of an experienced mediator, the parties attempt to reach an agreement.  If the mediation fails, the parties have the option of returning to court.  Through mediation, the parties may resolve all of their issues or only some of them, thereby narrowing the issues for trial.  Other litigants prefer to resolve the matter in an arbitration proceeding where the arbitrator renders a decision that is binding on all the parties.

For corporations and businesses, it is essential to determine which form of ADR is suitable for your case.

Factors to Consider When Choosing Mediation or Arbitration for Your Business Dispute

  1. What does each party expect from the outcome?
  2. Are the expectations of the parties reasonable?
  3. Is it important to preserve the relationship between the parties?
  4. Do the parties expect to continue to do business together once the dispute is resolved?
  5. How suitable is this dispute for resolution through mediation or arbitration?
    • Are the facts known and agreed upon?
    • Are the parties willing to exchange evidence in an expedited manner?

Once the decision to pursue ADR has been made, choosing the right company with experienced mediators and arbitrators is vital to the outcome of the case. The right neutral, whether an experienced practitioner or former jurist, is key to any successful ADR experience. It is important to vet both the company and the individual neutrals who make up their panel.

Do you have a business dispute that you would like to resolve through arbitration or mediation? Submit your request here, or review our panel of neutrals here.