This article has been produced by an independent contributor and does not reflect the views and opinions of the Immediation team or the brand as a whole.
Business disputes are often time-consuming and expensive processes. No matter how carefully thought out your business is, you could still find yourself embroiled in lengthy court proceedings.
Some of the most common business disputes are as follows:
- Contractual disputes
- Debt collection and cash flow disputes
- Product, pricing or customer disputes
- Business partnership dispute
- Sale of business dispute
If your personal negotiation tactics have not worked out, you’ll need to take it a step further and enlist the help of an unbiased person to help you reach a solution.
There are three common strategies to resolving business disputes:
- Litigation
- Arbitration
- Mediation
Each has its own place in the Australian legal system- it’s all about finding the option that is the best fit for your business.
Let’s take a look at the difference and what you should keep in mind when making your decision.
Litigation
Litigation is the process of resolving your business dispute in court. You take your evidence and argument in front of the court and they make an unbiased decision based on the information presented.
You also have the option to contest the verdict in this scenario.
Litigation is the best decision for your dispute if:
- Both parties are located in the same state
- The ability to contest a decision is more important that reaching a solution quickly
- Mutual claims will likely be small
- The business and economics are reasonably mainstream
Arbitration
Arbitration is similar to litigation, as you present your argument (and evidence), to an unbiased tribunal, who makes a legally binding decision on the outcome of the dispute. The difference is that arbitration is a private process and can be confidential, if outlined as such in the agreement.
Arbitration is also a quicker and more efficient alternative to litigation.
If you are thinking of using arbitration to solve your business dispute, make sure that you consult with a specialist and get the wording on the paperwork correct, from the beginning.
Arbitration is the best choice if:
- You want to keep the information confidential
- You are looking for a fast resolution
- You have a dispute with someone overseas
Mediation
Mediation is a process of settling a dispute with the help of an unbiased, knowledgeable mediator. A mediator strives to identify the needs of both parties and assists them in reaching an amicable agreement.
Mediation is ideal if you are in a different state or country, as it can often be done online, through a virtual platform. If you are interested in the online mediation process and want to learn more, you can do so here.
Mediating a dispute might be the best option if:
- You want to maintain a good business relationship after the dispute is settled
- You wish to remain an active part of the process
- You want a quick resolution
- Confidentiality is important, and you want to keep the dispute out of the court system
- Parties are located in different states
Mediation is a good first-step in the process, and can help you avoid costly litigation proceedings, while salvaging important business relationships. In fact, it’s Immediation’s goal to help you sustain your business relationships, while resolving the matter quickly and professionally.
The team of legal and technical experts at Immediation are here to help guide you through the process and reach the best possible outcome. You can do it 100% online or opt to use a managed service where the Immediation personnel do everything for you, from start to finish. Our pricing information is available here
Want to know more, or enquire about your business dispute? Simply fill out the form on our contact page and we’ll be in touch.
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