Disputes are inevitable in business. When they come up, it might seem like going to court for a resolution is the best or only option. But, did you know there are alternatives to traditional litigation that can save your Alberta-based company time, money and stress?
Mediation: A collaborative approach
Mediation is a process disputing parties participate in voluntarily. A neutral third party helps the parties reach solutions by working together. It’s ideal for preserving business relationships as it encourages cooperation and understanding.
- Pros: Cost-effective, confidential and faster than litigation.
- Cons: Non-binding, requires willingness from both parties.
Mediation can be a successful approach for many business-related issues, including cases involving contract disputes or employment issues.
Arbitration: A binding decision
Arbitration involves an impartial arbitrator who makes a binding decision based on the evidence presented by the parties. It’s a private process that can be tailored to the needs of the parties.
- Pros: Quicker resolution, flexible procedures and binding decisions.
- Cons: Limited appeal rights, can be costly.
Arbitration could be most effective in complex commercial disputes, intellectual property issues and other matters that are too complicated to resolve without more formal approaches.
Negotiation: Direct communication
Negotiation is a direct discussion between the parties to reach a mutually beneficial agreement. It’s the most common form of dispute resolution and can be used in almost any situation.
- Pros: Highly flexible, preserves relationships and cost-effective.
- Cons: May require skilled negotiator, non-binding.
Negotiation is an informal and personal way to directly resolve an issue without the involvement of courts or professionals, but the resulting agreements can be difficult or impossible to enforce. Thus, issues that you might address through negotiation include miscommunications with suppliers or customer complaints.
These and other alternative dispute resolution methods offer viable options for resolving disputes. They can provide a more efficient, cost-effective and less adversarial approach to dispute resolution. Remember, the right dispute resolution method depends on your specific situation. Working with a lawyer can help you navigate these options and find the best solution for your business.