When you run a California business, your chances of finding it embroiled in a business dispute at some point are high. However, not every business dispute has to lead to a lengthy, expensive courtroom showdown.
Per Harvard University, you may be able to use a number of different strategies to settle disagreements involving your clients, your partners or other companies with which you do business. You may be able to resolve your issues in one of the following three ways.
1. By working with a mediator
You and the other party or parties involved in your business dispute may want to try working with a mediator to see if the neutral third party might help you arrive at an agreeable solution. The mediator may give you all his or her opinion about how to proceed. However, the mediator’s thoughts are just that – an opinion, which is different than a legally binding ruling.
2. By working with an arbitrator
Arbitration is a bit different than mediation in that the arbitrator’s decision is a binding one. As is the case with mediation, the arbitrator is an unbiased third party who hears all sides and then makes a decision about how to resolve the situation.
3. By engaging in litigation
When other dispute resolution methods fail to work, you may have to litigate your business dispute. This means both sides may have to face off in court in front of a judge or jury to settle the dispute.
The option that may serve your needs most favorably may depend on the type of dispute you face and whether you want to preserve the business relationship, among other factors.