There was a time, not so long ago, when disagreements between gentlemen were more likely to be decided by a duel than a court of law. Although the most famous duel is probably Hamilton’s fatal showdown with Vice President Burr in Weehawken, New Jersey, this alternative means of dispute resolution was particularly popular in the Carolinas. Today, dueling is illegal (although Canada is working on bringing it back), but other alternatives to lawsuits remain quite popular.
For many of our business clients, avoiding litigation is a top priority. We frequently draft or review business contracts that keep our clients out of court by providing for other means of dispute resolution. Since dueling is not an option, we recommend mediation or arbitration.
Mediation
Mediation is a negotiation facilitated by a neutral third party. The focus of a mediation is to find a path forward rather than to assign blame.
Mediations are a popular means of dispute resolution because they quickly and cheaply resolve disputes. A mediation session might take just one day, and at the end of the day the parties involved either have a path for moving their working relationship forward, or they know that they need to dissolve their relationship.
Opting for mediation if a dispute arises is ideal for parties who envision working together for a long time toward a shared goal.
Arbitration
Going through arbitration is a lot like going to court, except that it is faster, cheaper, and private. An impartial third party is hired as the arbitrator, and both sides make their case, oftentimes using the same sort of evidence that would be used in a courtroom. The arbitrator makes a ruling at the end of the case, and all the parties involved are bound by it via contract.
Arbitration is popular because it is faster and cheaper than going to court, but it is still adversarial and focused on finding the truth and assigning blame. As an added benefit, most arbitrations are private, so businesses can have their disputes resolved fairly without airing their dirty laundry in a public courtroom.
We’ll Be Your Second
If you are a business owner who needs a contract drafted or reviewed, our team is ready to help.