Mississippi business owners like you need to know dispute resolution methods. No one wants to end up in a dispute. But when one happens, it is better to have tools than not. To this end, you should know your options. You should know the benefits and potential downsides of each.
Two of the options you have are arbitration and litigation. Depending on what you want out of your resolution, one may benefit you more than the other.
What is litigation?
The Balance discusses the differences between arbitration and litigation. Both are dispute resolution methods. Litigation is what you likely think of when you think of “taking someone to court”. This involves a judge who oversees your case in the court. You and the opposing parties present your facts and evidence. The judge makes a decision based on what they hear. Their decision is legally binding.
This is a good option if you are dealing with a lot of assets or high stakes. This is because it costs a lot of time and money. If you are not risking much, the price is not worth it. It is also better if you do not mind burning your bridges. It is hard to retain a good relationship after taking someone to court.
What is arbitration?
If you think there is a chance at working things out, you may want to try arbitration instead. This method introduces an arbitrator, who acts in a similar way to a judge. They listen to your cases and make a legally binding decision. But it does not take as much time or money. Your dispute is not publicized either. The lack of stress makes it easier to maintain relationships, which can benefit you in the future.