Alternative Dispute Resolution

Sometimes, litigation may not be the best method of resolving a business dispute. The litigation process can be time consuming and costly, and some people find it to be altogether unnecessary. Fortunately, there are other options available that still allow you to legally solve a disagreement. These legal techniques are known as alternative dispute resolution (ADR).

In general there are two main forms of alternative dispute resolution that businesspeople tend to employ: mediation and arbitration. Both of these processes take place outside of a courtroom and in both situations, an unbiased third party sits in to help the disputing parties reach an agreement.

Mediation

During the mediation process, the disputing parties and an outside (and unbiased) individual, known as a mediator, gather outside a courtroom setting in an effort to reach a resolution. Typically, the mediator serves to facilitate open discussion and clear communication between the two parties. This person does not, however, play a direct role in the determination of the resolution.

Typically, people turn to mediation because it is often cheaper than litigation and the processes offers the prospect of confidentiality. It also allows both parties to have a say in the resolution, as opposed to litigation, in which a judge and jury determine the outcome.

Arbitration

Arbitration is very similar to mediation. During this process, an outside and unbiased third party, known as an arbitrator, sits down with the disputing parties outside of the courtroom. Unlike mediation, however, this person ultimately determines the outcome of the dispute. He or she examines the situation and determines what will be the best resolution. This decision, ultimately, will be binding for both disputing parties.

Many look to arbitration in place of litigation for many of the same reasons people turn to mediation. This process is typically quicker and cheaper, and it also offers up the possibility of confidentiality.

Contact Us

If you are interested in using alternative dispute resolution as a method of working out your business dispute, then the Austin business lawyers of Slater, Kennon & Pugh Ltd.LLP can help. To learn more, contact our offices today by dialing 512-472-2431