Litigating a breach of contract claim can be lengthy and costly. The time required to litigate a dispute takes valuable time away from running a business, which can lead to cash flow issues and other financial problems. Choosing to resolve a dispute through Alternative Dispute Resolution (“ADR”) can alleviate these concerns.
How Alternative Dispute Resolution Provisions May Help
Alternative forms of dispute resolution, such as mediation and arbitration, has been around for years. ADR can enable parties to resolve business disputes much faster than traditional litigation.
In mediation, the parties select one or more neutral people to help the parties resolve their dispute by agreement. This is preferable to litigation not only because it is faster and less expensive, but also because it gives the parties a say in the outcome of their dispute. If parties agree to mediate but are unable to resolve their dispute, they still have the right to litigate.
Arbitration is much more like litigation than mediation. In arbitration, the parties select an arbitrator to resolve their dispute for them. The arbitrator acts muck like a judge does. The parties present their cases to the arbitrator either in person, at something resembling a court hearing, or in writing. There are no appeals from an arbitration decision. The decision of the arbitrator is final and can be enforced by court order.
Parties can agree to use ADR to resolve a dispute in advance by including a provision in their contract that requires mediation or arbitration of any dispute that may arise. Such provisions usually provide the means by which an arbitrator or mediator will be selected and the manner in which the mediation or arbitration will proceed.
Considering the best way for your company to resolve a contract dispute before it arises is always a good idea.
If you are involved in a dispute and want to know whether Alternative Dispute Resolution is right for your situation, Gaslowitz Frankel can help. We specialize in such disputes and are equipped with the experience and knowledge to guide our clients to the best decision. We have helped hundreds of families arrive at a fair outcome in fiduciary disputes of all kinds. Contact us today to find out how we can help.
