In the course of doing business with someone, whether it is an employee or another company, you will almost certainly encounter some type of business dispute. There are several different ways to dispense with these matters, but having experienced legal counsel is essential to ensuring that your rights and interests are best represented and that you achieve the most optimal outcome. If your business is involved in an internal or external dispute, find out how Capstone Legal Strategies can serve you. What follows is an overview of the most common dispute resolution methods.
Negotiation
Of the available ways to resolve a business dispute, negotiations are the most informal. While companies can negotiate on their own, through their executive or other leadership, it is strongly recommended that you have an attorney negotiate on your behalf.
Say that a supplier has failed to live up to its end of a contract with your business. Although you may have the right to escalate this matter to a lawsuit, this could destroy your relationship with that company and force you to find another supplier. An attorney can assist with negotiations by reaching out to the supplier and helping facilitate an agreeable resolution, such as a modification to the existing contract. If this approach works, your lawyer would then formalize the agreement by modifying the contract.
Mediation
Mediation is another common dispute resolution tool for companies that wish to preserve their relationships with employees, businesses, or other parties. However, compared to negotiating, mediation may be more desirable if the dispute in question is more complex. Mediation can be pursued after a lawsuit is filed but pending litigation is not necessary.
During mediation, a neutral third party known as a mediator meets separately with the parties to better understand their perspectives of the dispute and to begin negotiating a settlement. The mediator cannot compel either party to agree to anything, but will work to facilitate compromise. Since the mediator is neutral, he or she cannot provide legal advice. That is why having an attorney during mediation is important. Your lawyer can review and make proposed changes to settlement terms, help you explain their legal consequences, and overall help you decide whether to settle the matter or litigate it.
Arbitration
Arbitration is a more formal dispute resolution process in which an arbitrator, who acts in many ways like a judge, issues a decision that resolves the outstanding issues. Arbitration is often required as part of a business contract because it avoids the time, money, and hassle of a trial. The arbitrator’s decision may be binding and non-appealable (except in limited cases like fraud) or it could be non-binding, depending on the provision that allows for it.
Arbitration rules, such as those concerning evidence, are less strict compared to those of the courtroom. Still, because arbitration is similar to a trial, it is a process in which you would want to have legal counsel. Your attorney will represent and advocate for you in many of the same ways that a lawyer does in court, including by collecting evidence, submitting documents for the arbitrator’s examination, procuring witness testimony (including expert witness testimony), cross-examining witnesses, and more.
Litigation
Finally, if the other methods are insufficient or unavailable, litigation is the ultimate way to resolve a business dispute. Filing a lawsuit is what initiates litigation, although it can also encourage other means of resolving the matter such as mediation.
Lawsuits are complicated. Not only are there substantive statutes, such as business laws, but there are various court rules like the rules of evidence, civil procedure, discovery, and local court rules. Having an attorney is imperative to advocating for and protecting your interests in the courtroom and working for the best possible result.
Let Us Work With You To Resolve Your Business Matter
Regardless of the nature of your business dispute, we have the experience and resources it takes to seek the most advantageous outcome. Learn more about your options by reaching out to Capstone Legal Strategies today.