20th Anniversary SAC Attorneys
Elite Lawyers
Lawyers of Distinction
Avvo Rating 10.0
Santa Clara County Bar Association
Association of American Trial Lawyers
Elite Lawyers Business James Cai 2017
Best Litigation Attorneys in San Jose
Expertise - Best Employment Lawyers in Santa Clara 2021
Expertise - Best Employment Lawyers in Santa Clara 2022

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.

Myth #1: Going to Court is the Only Option

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.

Myth #2: Alternative Dispute Resolution is Expensive

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.

Myth #3: Litigation is Always Costlier Than Alternative Dispute Resolution Methods

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.

Myth #4: Mediation is Ineffective

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.

Myth #5: Mediation Leads to a Verdict

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.

Myth #6: Arbitration is Always Faster Than Litigation

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.

Contact Us for Legal Help

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.

Client Reviews
Mr. Cai Is a Diligent Attorney. My sister and I were defendants in a civil litigation case. We hired James Cai and his law firm, SAC Attorneys LLP. Mr. Cai is a diligent attorney and responded to our questions in a timely fashion. He and his staff were very helpful in keeping us informed of the proceedings of the case and in explaining each step. Mr. Cai is also very conscientious of fees and costs, and avoided unnecessary charges. The results of the Summary Adjudication sided with us. The Court Trial resulted in the “Final Statement of Decision” and “Judgment after Court Trial” overwhelmingly siding with us. Cynthia F.
I Am Truly Impressed. After spending a significant amount of time, money and efforts with my previous counsel at a larger law firm without getting meaningful results, I transferred my employment matter to SAC Attorneys LLP. The attorneys there were able to understand the complex situations of my case and put together an aggressive litigation strategy. We were able to file a compelling complaint within a week and forced the opposing party, which was represented by one of the largest law firms in California, to make a substantial settlement offer shortly thereafter. I am truly impressed by the no nonsense and results oriented approach by SAC Attorneys LLP attorneys. A job well done! X. Gao
They Took Time to Understand Our Technology. I am the founder of a bioinformatics start-up in the Silicon Valley and chose SAC Attorneys LLP as our corporate counsels. Their attorneys have great experience with high tech start-ups and were able to offer a highly competitive service plan while not sacrificing a bit of their quality of services. They took time to understand our technology and provided value added services by introducing investors and job candidates to us. We regard our attorneys at SAC Attorneys LLP not only as our legal advisors but also our venture partners. Dr. Pete S.