Legal disputes are common in any business, affecting customer, contractor, and employee dealings. However, resolving these disputes doesn’t always require lengthy and expensive litigation. In Texas, business owners can access various alternative dispute resolution (ADR) methods. Consulting a Texas business litigation lawyer can help determine if ADR is a suitable option for your specific dispute.
What Is ADR?
With ADR (Alternative Dispute Resolution), all parties involved in a business conflict agree to enlist a neutral third party’s help to facilitate reaching a mutually acceptable resolution or agreement. The two most common forms of ADR are mediation and arbitration. In mediation, the neutral third party facilitates discussion and negotiation but does not take sides in the underlying dispute. With arbitration, in contrast, the third-party acts as a “private judge” and will issue a decision–commonly known as an award–that is legally binding on both parties.
Why Use ADR?
While every Texas business dispute is unique, ADR typically offers a number of advantages for all sides over traditional litigation. Some of the more notable benefits include:
- Cost: Litigation is expensive. While ADR is not free, it is a less costly option for most business disputes than litigation. ADR usually takes less time, which means lower legal fees and other litigation-related expenses.
- Time: Pursuing business litigation in a large state like Texas is not quick. It may take several months–even years–for a civil lawsuit to reach trial on a busy judge’s calendar. ADR affords the parties a chance to resolve disputes on a more flexible and expedited timetable.
- Promoting a Resolution: Mediation is designed to help business owners achieve a negotiated settlement that satisfies all parties involved. This is often more productive and beneficial in the long run than winning a courtroom victory.
- Less Disruption: One thing many Texas business owners fail to understand is that litigation often represents a substantial disruption to their normal business operations. Key executives often must attend depositions and employees have to take time out of their work schedules to help with litigation matters like discovery. With ADR, these disruptions can be minimized so that resolution of the dispute does not slow down the entire business.
- Less Publicity: A public trial means broadcasting your business dispute to the public and the press. In an ADR proceeding, even an arbitration, the proceedings can be kept confidential. This in turn can help promote a negotiated settlement.
Our Texas Business Litigation Attorneys Can Advise You on the Benefits of ADR
ADR is not appropriate for every business dispute. But where mediation or arbitration is a viable option, it can provide many or all of the benefits listed above. So if you or your company is involved in a current or potential business dispute and need to speak with a Structure Law Group business litigation lawyer, call SLG today at (512) 881-7500 or contact us online to schedule a consultation.