Thought Leaders: Different options for resolving business disputes

Business disputes are inevitable in many industries and cover a broad range of claims. Common business disputes include those related to contracts, real estate, insurance, unfair competition, land use, employment, civil rights, fraud, negligence, personal injury, consumer protection, trade secrets, and intellectual property. Ideally, business disputes are resolved informally without the involvement of other parties. When disputes cannot be resolved amicably, however, parties must seek the assistance of a “neutral party” to either decide the matter for them or to help them reach a negotiated solution. Litigation, arbitration, and mediation are the three most common dispute resolution options.

• What is Civil Litigation? The term “civil litigation” refers to the process of resolving a non-criminal dispute in local, state, or federal court. Civil court cases are decided by a judge or a jury following a trial where each side is allowed to present evidence, cross-examine the other parties’ witnesses, and make legal arguments. Sometimes cases are decided by the judge through pre-trial briefing or other set procedures. Once a judge or jury enters a final judgment, the parties have the option of appealing the judgment to an appellate court which reviews the decision for errors or an abuse of discretion.

• What is Arbitration? Parties to a contract may agree to have their disputes decided by a private, paid arbitrator or panel of arbitrators instead of a judge. The terms of an arbitration agreement vary from contract to contract and control how the arbitration proceeds. Arbitration is typically binding, less formal, resolved more quickly than litigation, and often (though not always) less expensive than going to court.

• What is Mediation? Mediation is a process in which a neutral, trained mediator helps parties negotiate a mutually acceptable resolution to their dispute. The mediator does not decide the case or tell the parties what to do. In most instances, mediation is confidential. Mediation may be a contractual pre-requisite to filing a lawsuit or commencing arbitration proceedings, ordered by a court, or voluntary. Mediation often ends with the parties signing a written settlement agreement. If the parties do not resolve their dispute in mediation, they may initiate or continue a case in court or arbitration. 

If you have questions about a business dispute or available options for resolving that dispute, contact BHGR’s Litigation, ADR, or Appellate Groups. 

This article is informational only. The presentation or use of this information does not in any manner constitute an attorney-client relationship between BHGR and the website user. While the information on this site concerns legal issues, it is not intended as legal advice and is not a substitute for particularized advice from your own legal counsel.