Litigation is typically people’s first choice when seeking to solve a business dispute. A business may hire an attorney or legal professional to represent them and their issues. The purpose is to have a team of people dedicated to opposing the other person’s legal advancements.
However, litigation isn’t necessary if businesses try an alternative dispute resolution. In an alternative dispute resolution procedure, a mediator or arbitrator serves as a third-party neutral. A third-party neutral isn’t looking to “win” a case or take sides, but to find a solution by understanding both sides of the narrative. You can read further to understand the benefits of having a third-party neutral:
Resolving a dispute by understanding each side
A mediator or arbitrator acting as a third-party neutral seeks to assist both parties in collaborating and discussing legal alternatives without the need to go to court. Businesses often hire third-party neutrals after discovering how expensive and time-consuming litigation is. Furthermore, alternative dispute resolution may help maintain business relations.
For example, two well-known businesses that have worked together in the past may find themselves in a dispute. Without a solution, the two businesses would have no choice but to sue each other. A third-party neutral may be able to provide a legal solution to help resolve the dispute and allow both businesses to continue working together.
Alternative dispute resolution can reduce the stress and cost of resolving a dispute. Mediators and arbitrators can help provide possible solutions and strategies through consultations. Business leaders should learn more about their legal options when discussing alternative dispute resolution procedures.