Types of Alternative Dispute Resolution in Business

Types of Alternative Dispute Resolution in Business

Disputes are common amongst businesses, business partners, and employees. Litigation is expensive, time-consuming, and can cripple a business and relationships. As a result, there is a trend towards Alternative Dispute Resolution(ADR) mechanisms because of the cost of litigation can overwhelm a business.

There are a number of different methods of alternative dispute resolution that may be explored if a business needs to handle a matter. Some of these include the following:

  • Negotiation¬†traditionally occurs directly between the parties and their counsel and does not involve a neutral third party. Negotiation is challenging for some individuals because it requires them to compromise.¬†
  • Mediation¬†is a method that is commonly used in business. It is significantly less expensive and takes a lot less time than litigation does. A mediator does not have the ability to force the parties involved to make a decision.
  • Arbitration¬†a neutral arbitrator renders a decision, that is referred to as an award after there has been a presentation of evidence. There are a few different types of arbitration:¬†
    • Binding arbitration
    • Non-binding arbitration
    • Final-offer arbitration, where all parties involved submit their “best and final” offer to the arbitrator. The arbitrator will choose one of the decisions that have been submitted.
  • Collaborative Law,¬†where both parties are represented by a collaborative attorney and agree not to litigate. Combines mediation and negotiation in an effort to come to a resolution.

Business disputes can be detrimental. With the help of alternative dispute resolution, both parties involved can save a lot of time and money. If you need assistance with a business dispute, contact our firm today.

The Vigilante Law Firm, P.C. has years of experience aiding clients through matters of workplace discrimination and other employment matters. If you have been the victim of discrimination or harassment in the workplace, or require assistance with an employment agreement, contact our firm today.

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