Business disputes can be costly if not handled properly. Depending on the type of dispute, your business could suffer financial or reputational harm. You may have a couple of options for resolving a dispute. Business litigation is one option. If all else has failed and the other party will not work to resolve the dispute, then litigation may be an appropriate option. However, another option is alternative dispute resolution. Mediation and arbitration are examples of alternative dispute resolution. Unlike litigation, these two options may take place outside of a courtroom and/or in a less formal setting.

Below, our Redwood City and Palo Alto business dispute attorney explains the key differences between business litigation and alternative dispute resolution. We provide examples of situations where each might arise.

What Is Business Litigation?

Filing a lawsuit may be necessary for certain types of business disputes. In very general terms, litigation is the process of taking legal action against another party. Reasons for considering business litigation in California include:

  • Contact disputes. If another party breached a business contract, then it could be a good idea to seek litigation. It depends on the other party’s willingness to resolve the dispute and potentially other factors, such as whether the violation caused your business to suffer damages. We strongly recommend speaking with our Redwood City and Palo Alto business lawyer for more information on your options before taking any action.
  • Shareholder disputes. Corporations may run into issues with shareholders. We can assist with shareholder disputes that include compensation and contribution differences, shareholder agreement breaches and direction disagreements.
  • Partnerships. Your business partner may violate an agreement, causing you to suffer damages. If your business partner violated an agreement, then we can help you pursue compensation. We can also defend business partners who are facing litigation.

Whether litigation is the right choice depends on the circumstances. Generally in cases where prior dispute resolution attempts failed and/or damages occurred, then litigation may be necessary. Our Redwood City and Palo Alto business lawyer can help you review options that may resolve your situation.

What Is Alternative Dispute Resolution?

Alternative dispute resolution is exactly what it sounds like: an alternative way to resolve a dispute without litigation. Instead of litigation, you may be able to use mediation or arbitration to come to an agreement with the other party. Depending on which option you choose, you may be able to reach a legally binding agreement that permanently resolves the issue.

With mediation, a neutral third party reviews the specifics of a dispute and helps the involved parties come to a resolution. Mediation is a great way to come to a mutually satisfactory agreement if all involved parties enter negotiations with a cooperative mindset.

Arbitration works a bit differently, although a third party, the arbitrator, still helps you and the other parties reach a resolution. In arbitration, the arbitrator reviews the facts surrounding the case and makes a decision. Agreements reached in arbitration are either binding or non-binding depending on the circumstances.

Our Redwood City and Palo Alto dispute resolution attorney can help you review whether mediation or arbitration would be ideal for resolving your dispute.

Questions About Resolving a Business Dispute? Get a Free Initial Consult

Our Redwood City and Palo Alto business dispute attorney can help you review options for resolving a business dispute. Set up a free initial consultation with us by dialing (650) 456-2925 or using the contact form on our site.

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