When dealing with business disputes, you may want to turn toward litigation first. After all, it is one of the most talked-about options available. But you may have other options that you do not even know about.
Such is the case with alternative dispute resolution methods. These methods allow you to bypass the traditional complications associated with litigation while still reaching a desirable outcome.
FINRA discusses a couple of the most popular alternative dispute resolution options, including mediation and arbitration. Mediation would likely suit a situation in which you do not have a lot of volatile conflict. Mediators cannot make decisions for you, after all. They can only give their opinion and mediate your discussion, as the name suggests. They may also give their ideas on potential resolution options. In the end, however, the final decision rests with all involved parties. It is a good option if you want more freedom and wish to prioritize preserving your relations.
But sometimes, you need more structure than this. This is where arbitration may come in. Arbitration still allows you to skip the expensive and time consuming process of taking your case to court. However, an arbitrator fills a similar role to a judge. They oversee your case, listen to all sides present their evidence and arguments, and make a decision. This decision is final and legally binds all parties. Thus, it works better if you have a trickier or more complex argument.
What suits your situation best may differ depending on various factors. You could discuss your options with a legal professional to see what they suggest you go with.