When you run a Florida business, the odds of some type of business dispute arising at some point are high. Business disputes take on many different forms, but many of them arise due to contract issues, partnership concerns and similar matters. When a business dispute does arise, you have options when it comes to how to address it.
Per Harvard Law School, many companies embroiled in business disputes choose to handle the disputes in one of three ways: through mediation, arbitration or litigation.
In business mediation, all parties in the dispute work together with a third party who hears all sides and then recommends a solution. The mediator’s proposed resolution is not binding, however, which makes this form of alternative dispute resolution different than arbitration.
Arbitration is similar to mediation in the sense that, in arbitration, you and the other involved parties work alongside an impartial third party. However, unlike a mediator’s recommendation, the arbitrator’s decision is binding. Arbitration also remains confidential. Furthermore, once an arbitrator hands down a decision, there is typically no way to appeal it.
Litigation may make sense in situations where mediation and arbitration are either inappropriate or ineffective. Litigation typically takes place in a traditional courtroom environment, with all parties involved having their own legal representation. The judge or jury presiding over the case then issues a ruling that resolves the business dispute once and for all.
The form of dispute resolution, or alternative dispute resolution, that might serve you most favorably is going to depend on many variables, including whether you intend to work with the opposing side again sometime in the future.