Dealing with legal matters in any business can be a complicated task. Sometimes, disputes may arise when both parties disagree or if one party violates an agreement.
This is where dispute resolution comes in. It is a process wherein both parties can settle any legal conflicts without going to court. Mediation and arbitration are two of the most well-known alternative approaches to resolving disputes outside of the courtroom.
What Is Mediation?
Mediation is a type of dispute resolution method without having to be in the courtroom. A mediator manages the discussion between the two parties involved in the case in an effort to reach an agreement. However, the mediator does not have the authority to levy a settlement.
Mediation can be done privately, which allows flexibility during the process. A mediator can find resolutions that are beneficial to both affected parties. Mediation can also help to preserve business and personal relationships.
What Is Arbitration?
This method of conflict resolution business is more rigid and formal. Although arbitration is done outside of the courtroom, the process is very similar to a trial. An arbitrator casts a legally binding decision about a dispute after reviewing relevant evidence and documents.
During the arbitration, both parties present their cases to the arbitrator to decide a specific dispute. This occurs privately, and usually, issues are resolved quickly.
How Are They Different?
Although mediation and arbitration have many similarities, they differ in many ways too. Mediation is geared toward finding mutually beneficial resolutions to a problem both parties can agree with. Arbitration seeks a decision ruling to the advantage of one party over another.
Arbitration is more rigid and formal as it is akin to court hearings. Mediation can be more flexible and could be done as a discussion between the two involved parties.
Consult With the Right Attorney for Legal Assistance
Being involved in a business dispute can be quite daunting. When this happens, make sure to seek legal assistance from a reliable mediator or arbitrator. Get in touch with Craig, Terrill, Hale, & Grantham, LLP today! Our team of professional lawyers can assist you in settling any disputes with involved parties.