What seems like the ideal business partnership can turn into a nightmare, whether it be due to bad decisions or a misunderstanding. A court battle can make the situation even worse, as the battle might turn out to be long and depressing on both sides. Battles that are fought outside of court can be more cordial, as the environment is more relaxed and less stressful. For example, rather than going to court, a dispute between business partners can be settled via arbitration. If you and your business partner agree to settle the dispute via arbitration, there are several benefits that will be reaped.
1. A Faster Resolution to the Dispute
Arbitration is one of the fastest ways to settle a business dispute, as the process is different than a court battle. For example, there are several stages to a court trial that could take months or over a year to reach a final resolution. On the other hand, arbitration can be settled in as little as a few months depending on the depth of the disagreement between parties. By avoiding a long dispute, it will allow you and your business partner the privilege of getting things back on track faster. The two of you might see things more clearly and learn what needs to be done to prevent getting into such a situation in the future.
2. Keep the Legal Dispute Private
Going to court for a legal dispute will make the information accessible to the public. The downside of public records is that it can give you and your business partner a bad reputation. For example, if you decide to get into a new business partnership, the other person might be cautious due to there being a record of a legal dispute with your past business partner. Arbitration allows you and your business partner to keep the dispute out of the public eye. Although there is not a trial involved, the resolution made by the arbitrator will be just as legally binding.
3. Both Parties Can Choose the Arbitrator
You and your business partner might enjoy arbitration because an arbitrator can be chosen, unlike a court trial that is overseen by a judge. For example, you and your partner can hire a lawyer to resolve the dispute. By appointing an arbitrator, all parties involved will feel more confident that the case is being resolved without prejudice.
For more information on dispute arbitration, contact a professional near you.Share