As a business owner, dealing with a dispute when it crops up should serve as a top priority. Though you might initially think that going to court is your only option, in reality, you actually have several other paths that you could try.
This includes taking your dispute to an arbitrator or mediator instead of going to court directly.
The joint benefits of both
FINRA takes a look at the differences between arbitration and mediation. Generally speaking, arbitration and mediation hold similar value to those who seek them out. They allow you to avoid going to court, which in turn saves you time and money. It also keeps your business affairs private, because you do not have to worry about a public court record.
How arbitration works
Arbitration offers a little more structure if you believe that you may need the extra help. For example, if you are dealing with a high stakes or high asset case, then you may want someone else to make a ruling for you.
Arbitrators hold similar power to a judge. They can listen to all sides of a dispute present their information and then decide what they should do. Their decision holds legally binding power, meaning that you and your partners must abide by it.
How mediation works
Mediation, on the other hand, offers a more hands-off approach. A mediator cannot make a final decision on your behalf, so you and your partners should have the ability to work through the dispute largely on your own.
Mediators can, however, help you solve problems by guiding discussions and ensuring no one speaks out of turn or steps out of line. Thus, both options have great benefits that all parties can enjoy.
