Delev & Associates
  • Home
  • Practice Areas
    • Before Extending Credit
    • Civil Litigation
    • Commercial Collections UCC
    • Consumer Collections
    • Consumer Resource Center
    • Creditors’ Rights
  • About
    • Gregory D. Delev
    • Brian T. Giles
    • Donald W. Harper
  • Articles
  • Newsletters
  • Blog
  • Contact
Select Page

Why arbitration and mediation are effective alternatives to litigation

On behalf of Delev & Associates, LLC | Jul 6, 2020 | Business Litigation

Business disputes happen. When they do, it can be disruptive, expensive and costly in ways that may be unimaginable at the outset. A lengthy dispute can cause a company’s leaders to lose focus on the competitive environment or opportunities for growth.

To resolve disputes efficiently and cost-effectively, many business leaders opt for arbitration or mediation rather than litigation. Commonly referred to as alternative dispute resolution (ADR), these processes provide advantages to parties that litigation does not. It is important, however, to understand how arbitration and mediation work and what the differences are between them so you can make an informed decision on whether to employ either process when a commercial dispute occurs.

Understanding mediation and arbitration

Mediation and arbitration help parties resolve disputes in a manner that is typically less confrontational than litigation. In theory, these two processes provide both parties more control over the outcome of a dispute than litigation does. Generally, mediation is a non-binding process whereas arbitration is binding and replaces a trial.

Mediation typically involves a single mediator whose role is to facilitate the discussion between the parties while remaining neutral. A mediator is not a decision-maker. The mediator may provide an assessment of a dispute and offer possible solutions. The parties will decide whether to accept or reject any proposed settlement.

In arbitration, the adjudicating panel can be a single arbitrator or two or three people who serve as judges. Parties may be provided a list of prospective arbitrators or they may each select one person for the panel and those two select a third panel member.

Arbitration is often agreed to ahead of time

The decision to arbitrate rather than litigate is often written into a contract before a dispute occurs, whereas parties commonly agree to mediation after the dispute has arisen. Both arbitration and mediation can remain confidential. It is possible to mediate a portion of a dispute and arbitrate or litigate another portion of the same dispute.

In business, you are often only as strong as the partnerships you form. Arbitration and mediation allow both parties in a dispute to work together to resolve their differences, thus allowing for a continued partnership once the issue is resolved. This may be tougher to do when two parties litigate.

Recent Posts

  • Types of acceptable collateral for secured loans
  • Can you recover the costs for materials with a mechanic’s lien?
  • Retaining property from a borrower with financial troubles
  • How does foreclosure work in Ohio?
  • What are a creditors’ collection options?

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014

Categories

  • Business Litigation
  • Commercial Collections
  • Contract Disputes
  • Firm News
  • Uncategorized

RSS Feed

Subscribe To This Blog’s Feed