Disputes happen—in life and in business. While there are a multitude of dispute resolution avenues available, it can sometimes feel confusing for those involved. Already dealing with the pressures of a business disagreement, they try to find the best path to resolution, only for that path to seem nebulous due to the abundance of options.
In other words, when people are already feeling pressure, confusion about next steps can only make matters worse.
At moments like this, it’s a good idea to get back to the basics.
For the examples provided below, please imagine that all parties and their lawyers have exhausted their efforts to negotiate a resolution and they are now ready for outside assistance in resolving the dispute, but they don’t know where to turn.
The Program on Negotiation at Harvard Law School blog outlines the three main paths to resolution, which was adapted from a chapter in The Handbook of Dispute Resolution penned by Frank E. A. Sander and Lukasz Rozdeiczer:
1. Mediation
Mediation’s goal is for a neutral third party to guide disputants toward a consensus on their own.
“Rather than imposing a solution, a professional mediator works with the conflicting sides to explore the interests underlying their positions,” according to the blog.
Mediation allows for parties to explore their grievances and express their feelings, which can pave the way for negotiation.
Mediators can work with parties individually or separately to explore the areas of concern and then “try to help them hammer out a resolution that is sustainable, voluntary and nonbinding.”
2. Arbitration
With arbitration, the neutral third party serves as a judge who is charged with resolving the dispute.
“The arbitrator listens as each side argues its case and presents relevant evidence, then renders a binding decision,” according to the blog.
Disputants can negotiate nearly any aspect of the arbitration process, including if lawyers will be present at the time and the standards of evidence that will be used.
Arbitrators then hand down decisions that are typically confidential and cannot be appealed.
“Like mediation, arbitration tends to be much less expensive than litigation,” according to the blog.
3. Litigation
Civil litigation remains the most familiar type of dispute resolution, which involves a defendant The most familiar type of dispute resolution, civil litigation typically involves a defendant battling against a plaintiff in front of either a judge or a judge and jury.
In this scenario, the judge, or the jury has the responsibility of weighing evidence and making a ruling. Also, with litigation, the information shared in hearings and trials enters and typically stays on public record.
“Lawyers typically dominate litigation, which often ends in a settlement agreement during the pretrial period of discovery and preparation,” according to the blog.
Dispute resolution options are empowering to those who know them. Even a basic understanding could mean a quicker resolution—and for business to get back to running as-usual. Anything that slows down business costs money. Always remember there are other options outside of litigation.
