When it comes to commercial litigation, one of the fastest-growing procedures in this area of law is that of alternative dispute resolutions. Through this legal process, parties on both sides of a conflict can work together with the help of a neutral third party to reach an agreement. By doing so, they can often avoid going to court.
If this is a kind of conflict resolution that you would like to learn more about, a good place to start is by understanding the different types of alternative dispute resolutions out there. The one that may be best for you will depend on your individual circumstances.
Although arbitration is a type of alternative dispute resolution, it is the most formal kind. In this process, a third party works to settle disputes between individuals outside of a courtroom setting. The third party does not act as a judge but does have a deciding role.
With conciliation, you can expect the procedure to be less formal and more private. While it also includes the assistance of a third party, this person takes on more of a guiding role rather than being authoritative.
For an even less formal and more amicable settlement, a third option for approaching alternative dispute resolutions is mediation. Through mediation, a third-party mediator works to help parties reduce demands to reach a mutually beneficial agreement.
Last, conflicting parties may also choose to resolve problems through negotiation. Similar to mediation, this form of dispute resolution involves the work of both parties to meet an agreement of fair terms.
Although litigation is a common way to resolve commercial conflicts, alternative solutions are becoming increasingly popular. One of these four options may be helpful for you the next time your business faces conflict.