Missouri business owners like you value the growth of your business. A big part of growth involves making connections with others. It is important to value and tend to these connections, which is sometimes difficult.
What do you do if you run into a dispute with business partners? You do not want your bridges to burn, but you need to protect your best interest, too.
Why is litigation problematic?
FINRA discusses two alternative resolution methods outside of litigation. Litigation is the traditional method of dispute resolution. It involves taking your case to court. It allows you to get a legally binding ruling from a judge. But your dispute ends up recorded in public record, visible for anyone to see. Not only that, but the process of litigation is time consuming and expensive. Many business relationships do not recover from litigation over a dispute.
Mediation vs arbitration
But plenty of business relationships have persisted thanks to mediation or arbitration. Arbitration is a lighter form of litigation. An arbitrator listens to all sides of the dispute and makes a legally binding decision based on that. You do not take your case to court, though. This saves time and money. It allows you to keep matters private, too.
Mediation works best if your dispute is not too intense or involving high assets. A mediator cannot order anyone to do anything. They listen to the arguments and make suggestions based on what they hear. They mediate discussions as well, keeping arguments to a minimum and ensuring everyone has the chance to speak. Depending on your level of dispute and what you are after, one may work better than the other.