It’s not uncommon for a company to experience disputes, whether they’re related to intellectual property, employment discrimination, patent disputes, or other business-related disagreements. But thanks to alternative dispute resolution methods, you now have the option to settle everything without undergoing brutal judicial proceedings.
Settling disputes that arise between a company’s shareholders, directors, or even business partners can be constructive if the goal of both parties involved in the resolution is not to hurt the other. It may even open the door for a better approach or an advancement of their company’s current operating strategy.
Common Business Dispute Resolutions That Can Be Settled Without Going to Court
Common sources of disagreements include:
- Disagreement between investors or shareholders
- Clients that are dissatisfied with a company’s product or service
- A worker who encounters unjust treatment and discrimination or poor working circumstances
- Discrepancies in the contract terms or misunderstandings between contractors, suppliers, or business partners on the terms of a contract
In such a dispute, either party may opt not to pursue the matter in court. If you choose to settle the matter through a public hearing, it could result in scorn and other consequences in addition to being more expensive.
The following commercial issues are examples of those that can be settled through alternative dispute resolution outside of court:
1. Employment Disputes
There is no requirement or law stating that disputes arising in the workplace need to be litigated. In fact, a resolution that will benefit both sides involved in the conflict can often be reached by communicating openly with the other party. The usual reasons behind this kind of conflict include the following:
- Unjust terminations
- Conflicts over maternity leave
- Disagreements about pay
- Discrimination in the workplace
The best solution for resolving this kind of dispute is to use a mediator who can help reach a settlement peacefully. If you use mediation as your alternative resolution, all the evidence presented will be destroyed once the issue has been resolved.
Both sides have an equal chance to tell their perspective of the situation during mediation in front of a neutral third party. The mediator should be skilled at addressing work-related conflicts and have a wealth of industry expertise. This impartial third person assists both parties in presenting their cases while remaining neutral throughout the procedure.
2. Shareholder Disputes
Contrary to popular belief and what’s usually seen in television series and motion pictures, conflicts between shareholders at huge, global corporations are incredibly uncommon. In fact, smaller-sized businesses are the ones more likely to encounter this kind of dispute.
A shareholder conflict may result from misunderstandings among key parties. Common causes of conflict include misunderstandings and verbal rather than written proposals. The following outcomes are typically experienced by both stockholders when such disagreements occur:
- Refusal to allow input on important management choices
- A decrease in dividend payments or their refusal
- Undocumented transfer of intellectual property rights
The consequences of getting involved in such a dispute can be severe, even before the process of mediation or dispute resolution begins.
It’s necessary for the shareholders involved in the conflict to have an agreement to resolve the conflict peacefully. Both the voting rights and dividend payments should be specified in the agreement. The written agreement should also include a clause about the resolution – just like any other company contract.
3. Contractual Disputes
Contract violations give rise to legal challenges. No matter how inadvertent, a party’s failure to adhere to the terms of a contract is seen as a breach.
The following are a few of the most typical breaches:
- Unable to satisfy prescribed deadlines
- Unable to pay for products and services
- Not being able to provide the necessary goods or services
You may have to pay a few hundred to millions of dollars in damages if you lose a contract dispute. Massive infrastructure projects may be halted by disputes concerning their construction contracts since they can have a devastating effect on both sides.
Make the Decision To Settle Business Disputes Amicably
Both parties involved in a dispute case will experience less stress and work disruption if they choose to resolve the issue through mediation, as reaching a decision for the settlement is much quicker and less expensive. However, you will need an impartial third party to resolve these kinds of disputes. One such specialist with a wealth of expertise as an impartial arbitrator and mediator is Noah Hanft from FedArb.
