Debunking Common Myths About Business Dispute Resolution

As a business owner, it is almost impossible for you to avoid disputes. Disputes may arise between you and employees, customers, suppliers, partners, shareholders, and many other parties. As a business owner, you need to recognize when a dispute arises and deal with it diligently from the beginning. Unfortunately, when it comes to business dispute resolution, there are many myths and misconceptions that can lead to misunderstandings or people making the wrong decisions. In this article, we will debunk some of the most common myths about business dispute resolution.

Contrary to what most people think, going to court is not the only option for resolving business disputes. In fact, litigation is sometimes not the best way to resolve a business dispute. There are several alternatives to litigation. They include negotiation, mediation, and arbitration.

Some people assume that alternative dispute resolution is expensive. The cost of a particular alternative dispute resolution process depends on the case's specifics. However, the truth is that alternative dispute resolution is often less costly than litigation.

Going to court can be the costlier option, and often, that is the case. However, suppose an ADR process is prolonged because of, for example, the parties’ unwillingness to cooperate. In that case, ADR might end up being more expensive, while a simpler litigation case turns out less expensive.

Another common myth about business dispute resolution is that the mediation process is ineffective. This is not true. Mediation can be highly effective for resolving business disputes. Through mediation, disputing parties are able to communicate with the help of the mediator and reach a mutually agreeable resolution. However, the effectiveness of mediation depends on several things, including the willingness of the disputing parties to participate, the complexities of the case, and the mediator’s skills.

Some people think that resolving a business dispute through mediation entails taking the case to a third party and receiving a verdict from them. In reality, mediators do not make the final decision. Their role is simply to facilitate voluntary settlement of the matter between the parties. Mediators facilitate communication between disputing parties and help them reach a resolution. However, just because mediation does not lead to a verdict does not mean that parties are not bound by the outcome. After a resolution is reached, parties sign a legally binding agreement.

Indeed, often, arbitration is faster than litigation. However, at times, the arbitration process can take time. Some of the factors that can influence the speed of the arbitration process include the complexity of the case, availability of the parties or arbitrator(s), and choice of arbitration rules.

If you are involved in a business dispute, it is crucial that you act fast. Our skilled business litigation attorneys at SAC Attorneys LLP are here to offer you the legal representation you need and deserve. Contact us today to schedule a consultation.