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.