One of the biggest fears many business owners have is the threat of costly and length litigation. Why? Even when a business prevails in a lawsuit, the financial impact of litigating the case could be enough to force the business to close or reduce dramatically in size and scope. The concerns related to cost and time are big reasons why a large percentage of business owners strongly prefer resolving legal disputes through alternative forums and methods. Fortunately, in California, there are numerous forms of alternative dispute resolution that can be attempted in order to efficiently and effectively resolve a business dispute outside of the courtroom.
Benefits of Alternative Dispute Resolution (ADR)
There are a number of benefits associated with alternative dispute resolution. For example, if you use certain forms of ADR, you retain a greater level of control over the matter and reduce the risk of sensitive business information being made public. And, as mentioned, many forms of ADR offer pathways for resolving disputes in a more efficient and less costly manner.
Resolution through Arbitration
Arbitration involves a neutral third party (i.e. the arbitrator) stepping into the shoes of a judge. The arbitrator will then conduct a hearing similar to how a judge would conduct a proceeding in a court of law. If you agree to arbitrate the dispute, the arbitrator can then be empowered to make a final decision in regard to the business dispute. The arbitration process can be much faster than the court system and the discovery process is typically much shorter, and thus, more efficient.
Resolution through Mediation
Mediation is essentially a less formal version of arbitration. It is a process whereby the parties retain a high level of control and collaborate towards achieving a mutually beneficial outcome. Mediation typically involves a third party neutral (i.e. the mediator) who works with the parties to reach a “middle ground.”Most mediators are retired judges and/or attorneys with decades of experience and can provide helpful insight into strengths and weaknesses for all parties involved. The drawback to mediation is that it may not produce a viable outcome, especially when the parties involved are combative and not open to negotiation.
Consult with a Reputable Business Attorney in Los Angeles Today
If you are a business owner embroiled in a legal dispute, it is in your best interest to retain the services of a skilled and experienced business lawyer in Los Angeles such as the experts at Hakim Law Group. Our law firm represents a wide range of entrepreneurs, operating companies, venture capital firms, and financiers in numerous sectors of the economy. We possess the experience, knowledge and professionalism to help our clients attain the best possible outcome. To schedule a consultation or for further information please contact HLG at (310) 993-2203 or visit www.HakimLawGroup.com to learn more.