Why More Businesses Choose to Resolve Business Disputes Through Arbitration?

A dispute regarding your business is extremely disruptive and can divert your attention from your customers as well as causing disruption of your services due to the other party’s breach or failure to deliver. Disputes can also negatively affect your business reputation and image in the community and create animosity and hostility between you and the other party that is involved in the dispute.

When disputes arise, you need a New York commercial litigation attorney to help you resolve the matter through negotiation, alternative dispute resolution or litigating the matter in court. However, many businesses are choosing to use alternative dispute resolution methods such as arbitration because it is a more cost effective method to resolve business disputes avoiding lengthy and costly ligation. Arbitration also helps to reduce the costs and time of appeal.

Arbitration can be used for matters regarding contracts, business fraud, torts and misrepresentation, breach of fiduciary duty, vendor disputes, partnership disputes, real estate and business lease disputes. Both small and large businesses find arbitration a preferred method to resolve their business legal dispute problems. .

How Arbitration Works

The parties choose a neutral third party to act as the arbitrator to make a decision on the case. This means that the decision arrived upon by the arbitrator is binding. The arbitration is handled outside the formal courtroom usually at the offices of the arbitrator. The procedure is less formal. The parties present and argue their case before the arbitrator rather than a jury and/or judge. Arbitration is much faster than waiting for a court hearing date so you can get back to doing business sooner. The arbitrator’s decision is confidential. In fact, more business contracts these days require the parties to choose arbitration as the preferred dispute method recognizing the advantages and savings to the parties by using arbitration.

Other Dispute Methods

Mediation is another form of dispute method that businesses use to resolve their differences. The difference between arbitration and mediation is that the mediator does not make a legally binding decision like the arbitrator. The commercial mediator just brings the parties together so that they discuss their differences and come to a mutually agreeable decision in resolving their issues. If they are unable to come to a resolution, the parties can still go to court and litigate the matter with the help of a New York commercial litigation attorney or settle at a later date.