It may seem impossible to some: the idea of resolving disputes without taking the case to court. After all, the media gets saturated with stories about court cases and business rivalries that simple discussions cannot solve.
In reality, a large chunk of business litigation cases that go through the court could have actually gotten solved through an alternative dispute resolution method. Not only does this save time and money, but it can also save business ties.
What does mediation work best for?
FINRA looks into mediation and arbitration. These serve as two of the most popular forms of dispute resolution that allow people to avoid the court system. Each has its own potential benefits and drawbacks, and each may suit different situations.
For example, one argument may be relatively minor – something that all parties involved believe they could largely work through on their own. However, they agree that it would be nice to have a third party overseeing their discussions and ensuring everything goes smoothly and fairly. In this case, mediation would serve as the best option. A mediator does not have the power of a judge or arbitrator, but they can moderate talks and contribute their thoughts and opinions as they wish.
Cases that could use arbitrators
On the other hand, some cases need a little more structure. In these instances, arbitration works best. An arbitrator holds similar power to a judge, capable of making legally binding decisions that all parties must then abide by. However, as it does not involve a court hearing, all records remain private.
Both of these options can serve to preserve business relationships through the elimination of financial-related stress and leaked private information, which benefits everyone in the end.