When your Texas business finds itself embroiled in some type of business-based dispute, you have options available to you in terms of how to resolve it. The type of business dispute resolution that is right for you may depend on certain variables, such as the degree of contentiousness that exists between parties and whether you have any need to preserve the business relationship in the future.
Per Harvard University, you may decide to try to resolve your business dispute using one of the following three methods.
1. Mediation
Mediation is similar to divorce mediation because both involve opposing parties coming together to try to resolve their issues with the help of a neutral third party. In mediation, all parties present their sides to the mediator. Afterward, the mediator recommends how you might solve the dispute. However, the mediator’s recommendation is not legally binding and it is up to you and the other parties involved whether to take the mediator’s advice.
2. Arbitration
Arbitration also involves opposing sides working together with an unbiased third party. However, in this case, the third party is an arbitrator whose decision is legally binding.
3. Litigation
Litigation occurs when you and the opposing parties face off against one another in court. If other resolution attempts fail, or if the situation between parties is contentious enough that other options are not workable, you may have little choice but to litigate your business dispute.
Most of the time, mediation and arbitration are more affordable than litigation. In many cases, litigation leads to a settlement agreement between parties.
