Ohio business owners like you have to prepare for disputes in case you ever deal with them. While no one wants to get involved in a dispute, the possibility exists for everyone working with partners, employers or employees.
To this end, you must understand the dispute resolution methods available to you. Depending on your situation and the outcome you desire, some may benefit you more than others.
Alternative resolution methods
The Balance looks at the difference between litigation and arbitration. Arbitration is a popular alternative dispute resolution method. Arbitration involves an arbitrator listening to all sides presented in an argument. They make a decision after this, which holds a legal binding power. You do not need to take the case to court, though, which removes some of the pressure.
Where does litigation come in handy?
But sometimes, arbitration is not enough. Litigation is what you think of when you consider “taking someone to court”. It involves going to court and having a judge oversee the proceedings. Based on the evidence and testimony provided by all parties, this judge then makes a decision. As with arbitration, this decision is legally binding. But there is less wiggle room to work with a judge than there is with an arbitrator.
You will benefit the most from litigation if you get embedded in a volatile dispute that involves large assets. This is because court cases are costly and time-consuming. If you are not fighting for a lot of money, property or so on, the cost will likely outmatch the gains you may get.
Litigation can burn bridges, too. For this reason, you may want to go with it only if you feel you truly cannot work with your partners to reach an amenable agreement.