When businesses must resolve disputes, it is often an overreach to immediately turn to the Georgia courts. While the civil courts remain available to address legal conflicts between business entities or others, they don’t need to be the first option to turn to.
Many businesses find that private arbitration adequately addresses most legal disputes while still leaving the door open for a court decision should the matter fail to be resolved. Let’s dig deeper.
Why arbitration is favored
The power to resolve the matter remains with the parties, who then give the arbitrator the authority to determine the outcome. Arbitration prevents you and the other party from publicly airing your grievances in a courtroom setting and is not subject to public records laws.
Arbitration decisions are typically upheld by the courts and made enforceable and binding. The courts may need to be involved at a later point in the event that judicial enforcement is needed.
Who needs arbitration?
Arbitration has proved very useful in resolving labor disputes when unions are involved. But the practice has evolved to include other parties.
For others, mediation is a less formal alternative dispute resolution route to try when a business dispute arises. Sometimes, the mediator can identify issues with greater clarity than the parties, whose focus is more narrow.
Mediation is not binding like arbitration
Mediation can open the communication between parties when there is a block. Impasses can sometimes be negotiated to allow for a mutually acceptable resolution. It also allows for complex and outside-of-the-box solutions that might not otherwise readily come to mind.
When to try mediation or arbitration
It could be time to turn to alternative dispute resolutions like mediation or arbitration if you are out of other communication options and want to stave off litigation as the solution. Learning more about the processes involved is prudent at these times.
