Massachusetts business owners like you want to keep your bridges intact. You do not want to burn business relationships. You do not want to stunt new growth. But what happens when you and your partners disagree?
There are different types of dispute resolution methods for different situations. What works for one may not suit them all. Thus, you must look into each one and determine for yourself if it is correct.
Possible downsides to litigation
FINRA discusses three types of dispute resolution methods. They include litigation, arbitration and mediation. Litigation is often first up in discussion. This is because it is the most well-known. Litigation involves taking your case to court. There, a judge listens to both sides and grants a binding decision. On the down side, litigation takes a lot of time and costs money. Your business goes public, too. This has the potential to sour some of your business ties and make others wary of you.
Mediation and arbitration
Arbitration is somewhere between litigation and mediation. It is a more streamlined process. It does not involve an official court date. An arbitrator comes and listens to your arguments. Based on the cases provided, they pass down a decision. Their decision is also binding.
Mediation is the least strict method of resolving your disputes. It relies on a mediator. This mediator will listen to you and the other parties. They can make suggestions and voice their opinions. But they do not have the power to hand down a binding decision. It is up to the parties to draft a solution together. This option is good if the argument is not too bad and you wish to preserve business relations.