Business disputes arise for various reasons, but when you own and operate a business in Georgia, the chances of a business dispute arising at some point are high. When a dispute does arise between partners, employees and employers or other entities, you have options as far as how you attempt to resolve the issue.
According to Harvard Law School, many business owners involved in work-related conflicts try to resolve disputes using one of the following three methods.
When you mediate a business dispute, opposing parties present their sides to an impartial third party – the mediator. After hearing all of the facts of the dispute, the mediator then recommends what he or she believes to be a fair and reasonable resolution. However, the mediator’s decision is not legally binding.
Like mediation, arbitration sees opposing sides come together and explain their perspectives in front of an impartial third party. However, a key difference between mediation and arbitration is that while a mediator’s decision is not binding in the eyes of the law, an arbitrator’s decision is. Arbitration proceedings also typically remain confidential. Thus, if you have concerns about privacy, you may want to consider trying to work through your issue via this method.
When a conflict is especially contentious, or if you find yourselves unable to resolve the issue using alternative methods, you may need to hash things out in court. Litigating a business dispute means both sides secure their own legal representation and then work through matters in a public courtroom setting.
Many variables help determine what type of dispute resolution method might suit your needs. Some of these factors include whether you want to maintain a professional relationship in the future and whether you want matters to stay private.