California Injury Attorney Blog

Businesses involve contracts, sales, leases, real estate,and various other types agreements with other business entities. Sometimes, these transactions turn into disputes which business disputes arise when one or more party fails to honor their end of the bargain, causing a law suit to be filed and cross-actions should they be deemed appropriate.

In California, along with most courts in the United States, litigated matters may be settled if the disputing parties elect to have the matter resolved outside of the courtroom says California Business Attorney Steven C. Peck.

The Alternative Dispute Resolution or ADR is a series of positive and organized procedures for resolving disputes with the mutual consent of the parties involved. ADR encourages the parties to engage in negotiations to settle the dispute.

Business owners have options in dealing with this matter. They have four options to be precise. These are the following:

1. Direct Negotiation

Direct negotiation is a dispute resolution process wherein the two disputing parties work together and come to a resolution on their own. The parties communicate directly with each other without a third party who shall oversee or help with the dialogue.

This resolution process is the cheapest way to resolve a conflict. It needs no court fees, attorneys' fees, or other payments. It only requires that the two parties are there, willing to exchange sides regarding the disagreement. This form of resolution calls for effective planning, communication and negotiation skills.

2. Arbitration

This is a resolution wherein the parties in a dispute refers it to a third party, called the "arbitrators." The neutral party listens to the problems and arguments of both sides, examines their evidence, and renders a decision (award) after careful analysis.

Arbitration awards are generally an award of damages against a party. Both parties are bound to agree to the award, this is referred to as the "binding arbitration." The arbitrator's decision is final.

3. Mediation

Mediation is another form of resolution which aims to make disputing parties reach an agreement. The parties meet together with a mediator/s. In this case, the mediator assists them in the negotiation of their differences, but leaves the power to decide between the parties. The parties should be able to come to a mutual decision.

Mediation starts on a joint session and then proceeds to a separate caucus between the mediator and each individual party or their attorney. Mediation is strictly confidential. Thus, everything that is said and discussed in this process will be held in private and cannot be deemed admissible in court or in any other proceedings.

4. Litigation

If the parties cannot settle into an agreement by using an alternative dispute resolution, then their last option is to have the matter decided in a Court of Law. The purpose of business litigation is to determine which side is right or wrong.