Mediation v. Arbitration: Resolving Your Business Dispute


Unless you are a feisty litigator, going to court is probably not one of your passions; in fact, finding out that you are about to be involved in a lawsuit may can be very unpleasant. After all, we would all much rather be working, running our businesses, and enjoying what little free time we have during the interim. Unfortunately, while even our normal personal lives can lead to disputes and legal battles during some years, that is even more likely for a business owner. Depending on the size of your company, you could find yourself putting out fires daily, but when they escalate into a major issue that could be headed straight for the courtroom, you may want to speak with your attorney about alternative dispute resolution options like arbitration or mediation.

There are benefits to litigation, mediation, and arbitration. The courtroom experience, however, is much more well-known for being adversarial, expensive, super stressful, and in many cases—long and excruciatingly drawn out. Arbitration can be thought of as a step below the court process, with cases both heard and decided by the arbitrator. Testimonies on both sides are allowed, and evidence is also entered as part of the process, if necessary. While not as rigid as the courtroom or as expensive, arbitration is still much more formal than mediation—and may be heard by an individual well-versed in the law such as a retired judge or lawyer, or a professional with experience relevant to the case. The decision is both final and binding and can be extremely difficult to appeal.

Mediation is known to be successful in most cases and can be helpful for business owners trying to settle a dispute without ruining the potential for a long-term relationship, whether that be with an employee or independent contractor, another business owner or industry peer, or a vendor. Sometimes there may be the reluctance to lose a long-term and personal working relationship that is being soured by a dispute, but other times it could be that profit is the priority. In wrecking relations with a much-needed vendor, a business could be challenged to have products delivered. The neutral mediation works in a casual atmosphere and usually offers flexible scheduling for everyone involved. Affordability is a key benefit in mediation, along with the fact that the parties in dispute are usually motivated to solve their differences—and this is expected of them, with the mediator only there to guide.

The Bolender Law Firm will advocate on behalf of clients through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!


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