A Quick Overview of Dispute Resolution

Nearly every business faces disputes at some point. These may be internal issues between employees and employers, or disagreements with other businesses, consumers, or third parties. It’s important for your business that you are aware of the types of conflicts that may arise and that you are prepared to handle them. Disputes could be resolved through:

• Mediation
• Conciliation
• Arbitration
• Lawsuits

There are some important differences between these four types of dispute resolution. Mediation, conciliation, and arbitration are all forms of alternative dispute resolution, though mediation and conciliation are considered consensual processes, while arbitration and lawsuits are adjudicative processes.

Consensual Processes

Businesses frequently use consensual processes because they are less costly and quicker than adjudicative processes. In both of these types of resolution, a third party – either a mediator or conciliator – listens to the issues and helps both sides come to a satisfactory compromise. Using a consensual process can also result in better relationships between parties involved and less bad press for the companies in question.

Adjudicative Processes

Arbitration and traditional lawsuits do play out quite differently. Lawsuits take place in a courtroom and are decided by a judge or jury, while arbitration is overseen by one or more arbitrators. However, both of these processes result in a decision from the parties listening to the case, and this decision is legally binding.

Contact Us

No matter what form of dispute resolution ends up being right for your company, an experienced business attorney can advise you on your rights and how to protect your interests. Call the Austin business lawyers of Slater, Kennon & Pugh LLP today at 512-472-2431 to get started on your case.