Disagreements and disputes in business can have serious consequences for all involved, particularly when the dispute requires litigation. From the costs, time and risk to your business’ reputation, it’s often recommended that you seek other ways of resolving a business dispute. When you have chosen the legal proceedings you wish to follow, or if you are not sure which is the best choice for you, it’s time to hire a lawyer to support and advise you throughout. However, the lawyer’s role will vary depending on which resolution strategy you select. Here are 3 ways to resolve a business dispute.
- Mediation
If you choose mediation, a neutral third party will help you and the other side reach a settlement that you can both accept. The third party or mediator cannot advise or force you to come to a decision; they are only present to facilitate discussion and help you reach a resolution. Mediation is a popular and highly recommended option as it means the disputing parties have a better chance of retaining control over the outcome. If you choose arbitration, the arbitrator is able to make a binding legal decision and in litigation the judge will rule as they see fit. The potential drawback of mediation is that neither party is legally obliged to stick to what was agreed. Having a lawyer available throughout the process can be beneficial as you will have a clearer understanding of your options.
- Arbitration
Arbitration involves asking an independent third party to look at all the facts of the dispute and to make a decision. The decision is legally binding which is why it’s important to hire a lawyer throughout the process, although it is not mandatory. They will be able to guide you through the process and frame your arguments and evidence to make your case more compelling to the third party. Ideally you should choose a lawyer with experience in your industry and sector. For example, Hans Jurie Zietsman has experience in arbitration and adjudication in engineering and construction such as oil, gas, energy, mining, mineral processing, and petrochemical industry.
In cases where mediation has been unsuccessful and arbitration is not appealing, the last option is litigation.
- Litigation
Litigation is often a last resort for business dispute resolution for several reasons. Taking legal action is a lengthy and costly process for all parties and involves exposing a lot of sensitive business information to the public. In addition, when you leave the final decision in the hands of a court, you lose any control over the outcome whereas in mediation you have input and can negotiate. If you do need to opt for litigation because mediation has failed and arbitration is not appropriate, you will need to hire a lawyer as soon as possible.
Mediation is often the best way to minimize your legal costs, but depending on the dispute it may not be the best option. With any of the above resolutions, you should hire a lawyer to advise and support you throughout the process.
