Avoiding litigation is one thing that all smart business owners want to do. If you try to tackle commercial litigation, you could face a huge expense and years of a court battle. It also will likely ruin the business relationships tied up in the mess.
Instead, consider opting for alternative methods of resolution. If you and the other parties agree, you can choose arbitration for almost every type of dispute.
The abilities of an arbitrator
FINRA discusses the differences and benefits between arbitration and mediation. In specific, arbitration acts as a closer stand-in for a court case. An arbitrator holds similar power to a judge. They will listen to all sides of a dispute present their version of events and any evidence they have. Then, based on what gets presented, they make a final decision.
Their decision holds legally binding power. In other words, you and all involved parties must abide by the choice the arbitrator makes.
In order to choose arbitration, you must first get an agreement from all involved parties. The only disputes it does not apply to are disputes criminal in nature. Unfortunately, if even one party wants to litigate, that trumps those who wish to arbitrate.
Commonality of arbitration
However, arbitration agreements are common and more likely to happen than you may think. Due to the general resistance to the costs and time that one must sink into court cases, it is actually more unusual to see a company turn down the offer to arbitrate.
Just keep in mind that all parties must agree and that nothing criminal should have caused the dispute in question. Outside of that, all lights are green for arbitration.
