A legal dispute has the potential to cost your company a significant amount of money to resolve. In addition to the impact on your resources, it can divert your time and mental focus, and it’s important for the long-term well-being of your business to seek a beneficial resolution. This is why some companies prefer alternative dispute resolution as a way to pursue an outcome that is satisfactory without the need for the complexity and expense that often comes with litigation.
There are different ADR options available, and the right choice depends on the details of your individual situation. Before you decide how to approach your dispute, you would be wise to learn about all of these options and identify the one that will provide your business with the greatest chance of success. It is worthwhile to explore out-of-court resolution methods as this can save your company time and money.
ADR options to consider
Alternative dispute resolution includes different methods that allow two disputing parties to reach a beneficial resolution to their concerns. It is possible to employ ADR in even the most complex and high-stakes situations, providing the opportunity for both sides to express concerns and pursue specific terms. Two of the most common and popular options for ADR include:
- Mediation — With mediation, a neutral third party helps both sides discuss concerns and negotiate a reasonable outcome to their dispute. The interested parties have control over the terms of the final agreement, but the mediator may provide guidance.
- Arbitration — Arbitration is a more formal trial-like process. There are one or more arbitrators presiding over the arbitration process, chosen by the two disputing parties. A majority vote determines the final outcome.
There are also hybrids of ADR and litigation that may prove most beneficial for more complex situations. It is possible that ADR can resolve certain aspects of the case while litigation is necessary for others.
The long-term goal
The goal of a New Jersey business in any type of dispute is to reach a resolution that is beneficial and sustainable long-term. It is critical to keep the perspective on terms that will allow a company long-term prosperity and security. ADR methods offer a way for two conflicting parties to have more control over the outcome while still avoiding the cost and stress of litigation. Before you agree to a settlement or make a decision that will affect your business, you may find it beneficial to consider how alternative dispute resolution methods could be helpful.