When a business is facing a legal challenge involving another person or party, it can result in significant complications and financial loss. A dispute is more than just an inconvenience, and Texas business owners will want to do everything possible to minimize loss, reduce the chance of future complications and more. There are multiple options for resolving a business dispute outside of the litigation process. This includes mediation and arbitration.
Mediation versus arbitration
Mediation is a process that employs a neutral third party who will oversee negotiations and discussions between two contesting parties. Mediation requires cooperative conversations with the intent of reaching a satisfactory conclusion for everyone. The mediator can offer suggestions, help resolve problems and lead the discussion toward a positive outcome. Mediation is typically faster, less expensive and less formal than the litigation process.
Arbitration is similar to a trial in that both sides can present evidence and witnesses. A panel of arbitrators will make the final decision on the dispute, much like a judge. It is a more formal process, but it is still an alternative to the length and stress of a full trial.
Positive resolutions are the goal
A Texas business owner will benefit from seeking the guidance and support of an attorney when facing a dispute. While the situation may seem complex, that does not necessarily mean that the only option is to go to court. An assessment of the situation can help a business decide how to most effectively seek a positive resolution to its ongoing concerns.