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Using alternative dispute resolution to settle business conflicts 

On Behalf of | Jul 25, 2024 | Uncategorized

The corporate world is fast-paced and stressful sometimes. This means that disputes may arise. For instance, business partners could fall out over which direction to take the company next. Or, a conflict may arise about profit sharing or dismissing a key team member. 

One way that disputes like this can be resolved is through litigation, but that isn’t always the best way. Alternative dispute resolution (ADR) can be much more private and efficient.

Outlined below are two of the main types of ADR. 

Mediation 

Mediation is a popular form of ADR. This is especially useful when business partners have reached a deadlock. The idea of mediation is to get discussions going again through open lines of communication. 

During negotiations, a mediator will be present, but they are there to guide rather than dictate. The idea is that parties to the dispute communicate and compromise until they eventually reach a satisfactory agreement. This agreement can then be drafted into a legally binding document. One of the main benefits of mediation is that it can usually preserve the working relationship between parties. 

Arbitration 

Arbitration is a more formal type of ADR, but it is not as formal as the courtroom. An arbitrator will oversee the process. They will usually be an expert on the particular issue at hand. The arbitrator will listen to all sides and then come to a ruling based on who presents the strongest case. 

While arbitration works in a similar way to court, it is usually much more efficient in terms of time and cost. 

ADR is just one of several ways that you can resolve a business dispute. To choose the right option in your circumstances, it will be helpful to seek legal guidance.