Utah business owners often hope that their company’s operations will run as smoothly as possible. While this may be the case for a time, the likelihood of a business-related dispute is high. As a result, it is wise for you as a business owner to understand your legal options when it comes to handling a dispute, lawsuit or other similar legal matter.
While litigation is often used as a means to handle business-related conflict, it does not have to be the first course of action. You could find that another dispute resolution method could better suit your needs. For example, arbitration may have various benefits that appeal to you during this difficult time.
What does arbitration entail?
It is no secret that litigation takes time, effort and money. In some cases, going to court over a disputed matter is unavoidable, but you may have the ability to approach the matter with arbitration. This alternative method may allow you to address the problem in a more timely fashion and without facing as much financial expenditure.
When arbitrating a matter, the following details will likely apply:
- You and the other party involved will present the issue to an unbiased third party known as an arbitrator, who is typically an attorney experienced with arbitration, but not always.
- The arbitrator listens to both sides and offers an opinion on the settlement of the matter.
- In some cases, the opinion offered by the arbitrator has a binding effect on the parties, but in other instances, the parties involved may reject the opinion.
- The opinions offered by the arbitrator do not go into the public record, which could afford you and your business more privacy over the matter, unlike litigation judgments.
If you hope to go through arbitration rather than litigation, the other party involved in the dispute will likely have to agree to the process. If you believe that this option could suit various matters in your business dealings, you may consider adding an arbitration clause to business contracts so all parties agree to this dispute resolution method ahead of time.
Does it suit your situation?
Every business dispute is different, and each arbitration case has its unique elements. Though this process typically does take less time and cost less money than traditional litigation, the exact amount of time and money will depend on how complex your case is and other factors. As a result, ensuring this method suits your circumstances before moving forward is wise.