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Alternative dispute resolution saves time and money

On Behalf of | May 10, 2024 | Comprehensive Business Law

Most successful New York business owners have worked long and hard to get where they’re at. The last thing they want is to be tied up in litigation over a business dispute. Things like that can take a serious toll on a company’s bottom line. If a problem arises, it is always best to seek an alternative dispute resolution (ADR) as a means of achieving a fair and agreeable solution.  

There are three main types of ADR, including out-of-court negotiations, mediation and arbitration. While each process functions differently, it enables a business owner to settle a dispute without a lawsuit. Seeking experienced legal counsel is the easiest way to determine which option is most viable in a particular case.  

How are alternative dispute resolutions different from litigation? 

If parties involved in a business dispute agree to negotiate a solution, they enter discussions alongside their chosen legal representatives. Negotiation demands a willingness to cooperate and compromise. If mediation is the preferred ADR, a neutral party facilitates discussion sessions and makes sure both sides adhere to the agreement to avoid confrontation and work together to find common ground upon which to build a solution. Finally, some business owners choose arbitration to settle disputes. Arbitration functions a lot like litigation, except in a confidential setting where an arbitrator listens to testimony and makes a decision. 

When there is a certain amount of money at stake, there will be several other panelists assisting the arbitrator. The arbitrator’s decisions are legally binding. If ADR attempts are unsuccessful, a business owner can take the case to court. Either way, it is wise to seek experienced counsel in all dispute-related matters. 


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