When it comes to a commercial contract dispute, litigating and litigating aggressively have often been the common wisdom. However, there may be cases where at least attempting to negotiate a settlement may lead to a preferable outcome for both parties.
From shareholder disagreements to business contracts, an alternative dispute resolution is an emerging form of legal negotiation that may help actors on either side of a conflict to find a better solution by finding common ground.
Crafting a custom solution that makes business sense
Facing litigation may mean facing a winner-takes-all situation in which a judge and jury decide a case unilaterally. While that may be an acceptable risk when one side of a dispute seems clearly at fault, in some cases it may better suit both parties’ interests to seek a negotiated agreement.
Avoiding a drawn-out battle that may compromise operations
When parties to a contract dispute dig in their heels, the resulting legal battle may last many months or many years. Business litigants may be especially hesitant to appear weak by suggesting mediation or arbitration. However, the potential advantages of reduced negotiation time/court fees and increased leverage during a negotiation settlement may offset concerns about diminished industry standing.
Finding a way forward that preserves smart options
When a business partner breaks contract, the next steps taken may be crucial. Bringing the case to court may be necessary eventually. However, for many commercial actors, exploring alternative dispute resolution or other settlement options may help to bridge the gap between remediating contractual wrongs and righting an economic reality.