While business professionals and individuals enter into business contracts and partnerships with good intentions to perform their responsibilities and duties, routinely disputes arise. It is less costly and quicker if the parties can resolve matters on their own, but that is not always possible. Some matters are too complex and require the assistance of a New York commercial and business attorney, a mediator, arbitrator or other professional to assist the parties in resolving their differences. There are a number of dispute resolution methods, including litigation, that a business make take advantage when involved in a commercial dispute including the following:
Negotiation involves the process of the parties sitting down and trying to discuss the problem to find a resolution and settle the case, sometimes involving third parties such as their attorneys or other representatives.
Arbitration is a formal legal process involving a neutral third party or parties who decide the resolution of the matter after hearing each party’s testimony and witnesses and reviewing evidence. Arbitration may be binding or non-binding.
Mediation is also a formal legal process involving a third party who facilitates putting the parties together to talk and resolve issues with the help of the mediator. The mediator does not decide a resolution, and mediation is not binding.
Conciliation is similar to mediation because it involves a neutral third party who talks to the parties separately to find a way to get them to resolve their disputes.
Litigation is a formal legal process involving the court, a judge and/or jury that decides the outcome. The parties are free to use other dispute resolutions while in litigation such as mediation, arbitration or other negotiations.
When parties are unable to resolve matters, they can use one or a number of dispute methods to come to a solution. Litigation should be considered as the last resort because it is costly, lengthy and complex.