As a business owner, the last thing you want are problems brewing in your ranks. Unfortunately, disputes happen even to the best of businesses. You are bound to run into some conflict of interest at some point if your business involves more than one person.
The important thing is knowing how to deal with these disputes. You do not have to leap to litigation right away. In fact, in some cases, it may make things worse.
Pros of mediation
FINRA looks into a couple popular alternative dispute resolution options. They include mediation and arbitration. Mediation works better for disputes that are less “serious”. If you think you can work things out amongst yourselves but need a little guidance, this is the option for you.
A mediator oversees your discussion and helps referee your arguments. They step in when things get out of hand. They ensure everyone gets to say their piece. While they can offer advice and opinions, the ultimate decision regarding how to handle the dispute rests with you and the other parties.
Pros of arbitration
Arbitration is more like litigation. An arbitrator has the legal authority to hand down binding decisions. They act in a similar capacity to a judge, listening to everyone’s case. After hearing it all, they make a decision that resolves the dispute. All parties must abide by it. This option works best if your dispute involves high conflict and tension or a lot of assets and money.
You may want to avoid jumping right to litigation for a few reasons. First, alternative methods save you time and money. Second, relations are crucial in the world of business. The last thing you want to do is alienate whoever you are disputing with. Consider contacting a legal expert to see which option holds the most promise for you.