Getting into disputes is a simple fact of life, whether these disputes happen between friends, couples or business partners.
However, due to the number of assets or money that could end up involved in a business dispute, these arguments often end up getting out of hand quickly. It is important for business owners in these situations to do what they can to preserve their business ties. How can they do so?
Taking a case to court
FINRA discusses alternative dispute resolution methods such as arbitration and mediation. This is one of the best ways to preserve business ties. Ultimately, many salvageable relationships end up lost because of the stress of litigation, or the amount of money that people end up throwing into it.
On top of that, when people take a case to court, their business ends up recorded in public court documents that any member of the public can later peruse. This means if you had anything sensitive that you want to be kept out of the public’s eye, it all ends up revealed and put on display. This can do a lot of damage not only to a business relationship but to each business and their separate reputations.
Arbitration and mediation
Instead, parties can opt for arbitration or mediation. They both allow parties to skip the court date, saving time, money and privacy. Arbitration has a little more structure while mediation relies more on a party’s ability to come to a final result on their own, with minimal outside help.
In general, mediation can help partners work out their disagreements and could even salvage a relationship, so either option merits consideration.