What Is Mediation?
Mediation of a business dispute requires a neutral mediator to work with each party to reach a settlement that everyone can agree on. However, if the parties do not agree upon a settlement, the mediator does not have the authority necessary to impose an agreement. Mediation is a non-binding process. As opposed to trials, which are public, mediation is confidential and private. It is almost always less expensive than a trial.
What Is Arbitration?
With arbitration, an arbitrator acts as judge, evaluating evidence and making a binding decision. Arbitration is more formal than mediation, and the arbitrator is appointed by agreement from the parties to the dispute. With arbitration, rules of evidence differ from rules of evidence in trials. Arbitration generally takes less time than a trial and costs less. Unless provision for an appeal is included in an arbitration clause, there is no appeal option.
What Are the Advantages of ADR?
A commercial litigation attorney can advise you if ADR is to your advantage in a business dispute. Advantages of ADR include:
- Multi-party dispute suitability
- Generally less time and money is required
- Confidentiality
- Better preservation of reputation
- Practical resolutions can be tailored to parties' needs
What Should I Do in the Event of a Business Dispute?
If you find yourself involved with a business-related dispute, your first step should be consulting with an experienced commercial litigation attorney like the ones at Zarco Einhorn Salkowski & Brito, P.A. In some cases ADR is the best way to proceed, but that is by no means true in all cases. Business litigation in the court system is sometimes the best way to solve a business dispute, and in these cases it is critical that you have outstanding legal counsel.
No comments:
Post a Comment