Negotiation, Arbitration, and Mediation: Alternative Ways to Resolve a Dispute
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In any business and employer-worker relationship, a dispute may happen which can halt the operation and
create a rift between people which may adversely affect the business.
create a rift between people which may adversely affect the business.
In any business and employer-worker relationship, a dispute may happen which can halt the operation and
create a rift between people which may adversely affect the business.
To resolve disputes, there are several alternative procedures that will help people avoid the expensive and time-consuming court trial.
Negotiation Procedure
In this process, the opposing parties settle their differences on their own, without any third party to assist them.
Compared to all out-of-court procedures used to resolve a dispute, negotiation allows people to save the most money. However, the opposing parties may find it hard to stick to the deadline when they use this process. With this downside, the settlement may take longer (which may affect the business operation) compared to other alternative ways to resolve a dispute.
Arbitration Procedure
In this process, the opposing parties mutually designate an arbitrator (e.g., a retired judge or a business consultant) who will help them resolve a dispute.
Usually, arbitration may be completed within three to four months, much shorter compared to a court litigation which may drag for several years.
Another advantage of arbitration is that it usually costs less than 40 percent compared to court proceeding since there are few procedural rules and less formality.
However, there is one major disadvantage of using this procedure: both parties cannot appeal the arbitrator’s decision unless they can prove there is an outright fraud during the process.
Mediation Procedure
In this process of resolving disputes, the opposing parties mutually designate a mediator who will assist them to come up with a common ground in an attempt to give them mutual benefits.
Usually, a mediator can also offer solutions and may help parties to draft their final settlement.
A mediator also supervises the opposing parties in dealing with unrealistic expectations by assisting them in the bargaining process and relaying relevant information to each other.
According to corporate lawyers, parties should mutually and voluntarily agree to mediation to make its decision legally binding.
People should also consider that some states prohibit employers to resort to this process if there is no written employment agreement between them and their workers.
One of the most notable advantages of mediation is that the information presented by both parties will be confidential since the process will be conducted without the presence of the general public and jury.
On average, mediation may be completed within two to eight weeks, thus allowing both parties to reduce the cost of resolving a dispute.
ABOUT THE AUTHOR: Mesriani Law Group
Mesriani Law Group is an LA-based law firm that specializes in personal injury, employment and labor, social security and disability, and business and corporate cases. Under the helm of its founder, Rodney Mesriani the firm has been successfully representing clients for more than 15 years now. As a full service law firm, Mesriani Law Group provides high-quality and efficient legal representation by combining its unique business structure with the application of high-tech, cutting edge technology.
Copyright Mesriani Law Group
More information about Mesriani Law Group
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
create a rift between people which may adversely affect the business.
To resolve disputes, there are several alternative procedures that will help people avoid the expensive and time-consuming court trial.
Negotiation Procedure
In this process, the opposing parties settle their differences on their own, without any third party to assist them.
Compared to all out-of-court procedures used to resolve a dispute, negotiation allows people to save the most money. However, the opposing parties may find it hard to stick to the deadline when they use this process. With this downside, the settlement may take longer (which may affect the business operation) compared to other alternative ways to resolve a dispute.
Arbitration Procedure
In this process, the opposing parties mutually designate an arbitrator (e.g., a retired judge or a business consultant) who will help them resolve a dispute.
Usually, arbitration may be completed within three to four months, much shorter compared to a court litigation which may drag for several years.
Another advantage of arbitration is that it usually costs less than 40 percent compared to court proceeding since there are few procedural rules and less formality.
However, there is one major disadvantage of using this procedure: both parties cannot appeal the arbitrator’s decision unless they can prove there is an outright fraud during the process.
Mediation Procedure
In this process of resolving disputes, the opposing parties mutually designate a mediator who will assist them to come up with a common ground in an attempt to give them mutual benefits.
Usually, a mediator can also offer solutions and may help parties to draft their final settlement.
A mediator also supervises the opposing parties in dealing with unrealistic expectations by assisting them in the bargaining process and relaying relevant information to each other.
According to corporate lawyers, parties should mutually and voluntarily agree to mediation to make its decision legally binding.
People should also consider that some states prohibit employers to resort to this process if there is no written employment agreement between them and their workers.
One of the most notable advantages of mediation is that the information presented by both parties will be confidential since the process will be conducted without the presence of the general public and jury.
On average, mediation may be completed within two to eight weeks, thus allowing both parties to reduce the cost of resolving a dispute.
ABOUT THE AUTHOR: Mesriani Law Group
Mesriani Law Group is an LA-based law firm that specializes in personal injury, employment and labor, social security and disability, and business and corporate cases. Under the helm of its founder, Rodney Mesriani the firm has been successfully representing clients for more than 15 years now. As a full service law firm, Mesriani Law Group provides high-quality and efficient legal representation by combining its unique business structure with the application of high-tech, cutting edge technology.
Copyright Mesriani Law Group
More information about Mesriani Law Group
View all articles published by Mesriani Law Group
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
