As a Missouri contract worker, you know the possibility of a dispute always exists. No one wants to get into one, but they are unavoidable at times. Because of this, you need to have plans in place for handling disputes.
But how exactly do you handle them? What are your options and which ones are the best for you?
Alternative dispute resolution methods
FINRA looks at arbitration and mediation. They are two of the most common alternative dispute resolution methods. They compare to litigation, the more traditional method of solving disputes. Litigation involves going to a court and having a judge oversee your case. It gives you the security of having a binding judgment handed down. But at the same time, it often costs quite a bit, takes a long time and leaves your business in public record.
Arbitration falls somewhere between litigation and mediation. It allows you to get a legally binding decision from an arbitrator. However, you do not have to go through the hoops and steps required from those who choose litigation. It is more cost effective.
Benefits and downsides of mediation
Mediation is the most free-form method of dispute resolution. The mediator cannot hand down a binding decision. They can only offer their opinion and suggestions on what to do. This is great for a dispute that is not too serious. It lets all parties work things out on their own terms. Together, you can come to a mutually agreeable decision with some help.
The option that works best for you depends on what you want out of the dispute and what the dispute looks like. Take careful stock of the situation before making your decision.