Resolving Business Disputes Through Mediation, Arbitration, or Litigation

Lawsuits are often a part of doing business. However, many people do not realize that there are alternative methods of resolving disputes and not all disputes have to end up in the courtroom. There are several different ways to resolve business disputes and they all have their benefits, as well as their drawbacks. Below, one of our Utah business attorneys explains what these are.

Mediation 

Using mediation to resolve your business dispute is a faster and more affordable option than litigation. During mediation both sides meet with a neutral third party mediator. The mediator does not provide legal advice or make any final decisions. Their only role is to foster compromise and communication between the two opposing parties by asking questions and helping both sides to better understand each other.

Mediation is particularly useful when preserving the relationship between the two sides is important. Mediation can resolve most disputes. When the two parties can reach an agreement during mediation, the mediator will draft an agreement and submit it to the court. If the court approves it, the agreement becomes legally binding.

Mediation is also usually confidential. This is particularly beneficial for business owners who want to keep certain information about their company confidential. Anything said or presented in court becomes a matter of public record, meaning anyone can look up the information.

Arbitration 

Unlike mediation, arbitration is an adjudicatory method of dispute resolution. This means that at the end of the process, there is a decision made regarding who wins the case. That decision is final and legally binding. Many business contracts stipulate that disputes must be resolved through arbitration. An “arbitration clause” in your contract could potentially save you a lot of time and money.

During arbitration, a neutral arbitrator will review the case, as well as evidence, briefs, testimonies, and other information. The arbitrator will then make the final decision in the case. Arbitration is often used when opposing parties want someone else to make a final decision in the case but they also want to avoid the time, formality, and expense of trial.

Litigation 

Litigating a lawsuit is the costliest and most time-consuming way to resolve a business dispute. During litigation, the two sides will present their arguments, testimony, and evidence to a judge or jury. After reviewing all facts of the case, the judge or jury will then make a decision that is final and legally binding. Despite what you may see on TV and in movies, very few civil cases, including business disputes, end up in litigation. Most of these cases settle before trial, and in Utah, attorney fees are typically only awarded if a contract or an applicable state statue specifically provides for the prevailing party to recover them.

If you are interested in alternative dispute resolution rather than litigation, our Business Law Attorneys in Utah Can Help Resolve Your Dispute.

 Business disputes can interrupt operations, damage your reputation, and more. It is important to resolve them as quickly and as efficiently as possible. At AGS Law, our Utah business law attorneys can provide the legal advice you need and help you through the appropriate process to give you and your business the best chance of a successful outcome. Call us today at 801-477-6144 or chat with us online to schedule a consultation with one of our experienced attorneys and to learn more about how we can help you resolve your dispute.

Source:

utcourts.gov/en/about/miscellaneous/mediation.html