Litigation refers using the courts, arbitration or mediation to resolve a business dispute. A business dispute can occur in many ways. Usually, a business dispute arises between businesses when they disagree over the terms of a contract they have entered into. A business dispute can also arise over property disputes, billing issues or other disagreements.
What Should I Do if My Business Has a Dispute with Another Business?
If you have a contract with the other business, you should first review that contract. The contract may contain clauses that dictate how you should handle a dispute. For example, your contract may call for arbitration or mediation.
What Is Arbitration or Mediation?
Arbitration is a process for resolving a dispute between two parties outside of the court system. Generally, arbitration occurs when the two disputing parties sit down with a third neutral party, or “arbitrator.” The arbitrator listens to the disputing parties’ problems and arguments then decides on a resolution for the disputing parties.
Sometimes the decision of the arbitrator is final and must be adhered to by the parties; this is called “binding arbitration.” Other times, the decision of the arbitrator is not final; this is called “non-binding arbitration” or “mediation.”
Your contract should specify whether or not you are required to go through binding or non-binding arbitration.
What if My Contract Doesn’t Have an Arbitration or Mediation Clause?
Check to see if your contract has any other clauses for resolving disputes. If it doesn’t, or you don’t have a contract at all, then your best option is to get a attorney. An attorney may be able to talk the other business into resolving the dispute. If not, an attorney can help you sue the other business in court.
Do I Need an Attorney for My Business Dispute?
Business disputes can become very complex and unpleasant. We help you handle your dispute the right way.