Protecting Both Business Finances And Futures

Using arbitration to resolve business disputes

On Behalf of | Apr 25, 2024 | Business Litigation |

Nearly all California business owners will face a dispute at some point during their careers. Many owners may face multiple disputes from contractors, clients, or customers throughout their time of business ownership. Some disputes may be solved through mediation and negotiation. Others may require arbitration, which is often considered an alternative to litigation. Arbitration can help business owners negotiate through a dispute to avoid the often lengthy and expensive litigation process.  

How arbitration works 

Arbitration is one method of alternative dispute resolution often used by business owners who wish to avoid a lengthy court battle. Through arbitration, both parties involved in the dispute agree to have a neutral third party decide the outcome. The process of arbitration has some similarities to a trial, but also some notable differences.  

With arbitration, each party is allowed to make opening statements and present evidence that supports their case. Unlike a mediator who simply acts as a neutral third party who helps facilitate negotiations; the arbitrator has the authority to make the final decision on a case. Arbitration may be binding, where the decision is final and only open to appeal under very limited circumstances, or non-binding where the arbitrator’s decision is only a recommendation.  

Legal help during arbitration 

When approaching a dispute resolution, one can always benefit from seeking legal advice from a professional who is knowledgeable of California’s business litigation laws. Whether going through mediation, arbitration, or litigation, a business owner will often have legal questions about how best to negotiate the dispute. An attorney can answer those questions and help one navigate the process of dispute resolution. 



FindLaw Network