Running your own business can be a massive endeavor, whether you are just starting up or you have been operating for generations. And no matter how long you have been operating, there is the potential for legal issues to arise and threaten the future of your business.
Legal issues can stem from employment disputes, contract breaches or the protection of intellectual property. As a business owner, you likely want to resolve these matters as quickly, quietly and effectively as possible, which is why you may want to pursue an alternative method of dispute resolution.
What is alternative dispute resolution (ADR)?
ADR is an approach to resolving conflicts outside of court to avoid litigation. One form of ADR in Tennessee is mediation. Mediation involves parties working with a neutral third party — a mediator — to resolve a dispute themselves.
There are alternatives to mediation and litigation, as well. This includes arbitration, which falls between the other two options in terms of formality and setting. Some businesses choose to have arbitration clauses in contracts with employees or clients, for instance, that establishes arbitration as the chosen method of dispute resolution.
What are the benefits of ADR?
Methods like mediation and arbitration have numerous benefits over litigation. The three primary benefits include:
- Financial savings
- Faster resolutions
In general, ADR can be less expensive than litigation and it allows parties to resolve disputes more collaboratively, privately, and on a timeline that they set.
Know your rights in all types of disputes
Whether you go through mediation, arbitration or litigation to resolve a dispute, it is important that you understand your legal options and rights as a business owner. There are implications to your decisions in these situations, and you would be wise to have the guidance and support of an experienced attorney who can help you avoid costly missteps and pursue the desired outcome.