Austin TX Business Law Blog

Sunday, June 30, 2019

Alternative Dispute Resolution

Alternative dispute resolution is any method to resolve a dispute instead of resorting to litigation. These methods tend to be more collaborative as the parties come together to work on a mutually agreeable solution. The two most common alternative dispute resolution methods are mediation and arbitration. In a mediation, a neutral third-party mediator facilitates discussions between the two parties while working towards a mutual agreement. In arbitration, a neutral third party arbitrator is employed to facilitate the parties in working towards a mutual agreement. Arbitration tends to be more formal than mediation and the agreement that results from arbitration is frequently binding on all parties.

Advantages of Alternative Dispute Resolution

Whether it is a landlord-tenant dispute or a breach of contract situation, alternative dispute resolution has many advantages. Due to the more collaborative nature of alternative dispute resolution methods, the parties involved have a greater chance of preserving whatever is left of a positive relationship. This can be especially beneficial in conflicts involving business interests. Alternative dispute resolution means you are more likely to avoid burning a bridge with a longtime client, business partner, or someone else that has the potential to bring value to your business.

In addition to preserving relationships, alternative dispute resolution gives the parties greater control over the outcome. When a dispute is litigating, a judge or a jury essentially determines the fate of the parties. In alternative dispute resolution, the parties are put in control. Everyone gets to share and explain their side of the story as well as provide input in reaching a final decision. The parties also have more control over the process because they get to decide on who the neutral third party facilitator will be.

Alternative dispute resolution techniques also tend to save participants a great deal of time and a great deal of money. Parties to the dispute avoid paying those costs typically associated with litigation including expert fees and attorney fees. These methods also tend to be more streamlined than litigation which can result in significant time-saving. Alternative dispute resolution also allows the participants far more privacy than litigation. Once a conflict goes to court, it goes into public record. With alternative dispute resolution, things are kept private and will remain confidential.

Additionally, alternative dispute resolution methods can be far less stressful than litigation. With litigation, things can get highly contentious fast. You will have to make court appearances. Stand before a judge and possibly a jury. Go through extensive discovery. It can be a real burden. If you can avoid litigation using alternative dispute resolution techniques, a far more low-key process to a resolution can be used.

Texas Alternative Dispute Resolution Attorney

For many in conflict, alternative dispute resolution provides a way to reach a mutually agreeable solution that does not involve the time, money, and stress that is so often tied up in litigation. If you want to avoid court, but want a resolution to your conflict, contact The Kumar Law Firm today to discuss your options.

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