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Avoiding litigation by choosing arbitration

Legal disputes are both complex and costly for small businesses in California. They can drain your financial resources, add a significant amount of stress to your life and pose a threat to your future security. If you are facing the threat of a lawsuit or are already embroiled in a complicated dispute, you know how important it is to reach a beneficial solution, fast. 

Despite the complicated nature of legal disputes, it is actually possible for you to avoid litigation. There are alternatives to litigation, and the most common are mediation and arbitration. Arbitration is a way for you to resolve the threats to the well-being of your business without ever stepping foot inside a courtroom. It could be prudent for you to learn more about this option.

What does this process involve?

Arbitration is different from mediation in a few ways, yet both of these processes have the same goal of effectively reaching beneficial solutions in a less-stressful and productive manner. In arbitration, an impartial intermediary makes the final decision on a matter between two contesting parties. It works in the following way:

  • Both of the parties share a role in choosing the impartial intermediary.
  • The parties agree before the process begins to abide by the decision reached by the intermediary.
  • Before the ruling from the intermediary, there will be a hearing during which both sides will have a chance to present their case.
  • In some cases, arbitration can lead to negotiations between the two parties.

This form of alternate dispute resolution could be the right choice for you, allowing you to reach an agreement that works for both parties and eliminates the need for future legal action. Many businesses find that it is more cost-effective and beneficial to find an out-of-court solution for their business-related legal disputes.

A way to save you time, money and additional complication

Choosing a form of ADR, such as arbitration, is not always the best choice for every legal dispute. Depending on the nature of your dispute, it could be prudent for you to explore how arbitration could benefit you and the interests of your business before you move forward.

Effectively navigating the arbitration process is not always easy, and you may find it useful to have legal guidance from the very beginning. When there is much at stake, such as the well-being of your business, you have no time to lose in learning more about the legal options available to you.

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