In business, litigation is something most people want to avoid. Not only is it costly and time consuming, but the outcome is extremely unpredictable and even the most experienced attorney is never sure of the outcome. Shareholder disputes often benefits from alternative dispute resolution, such as arbitration and mediation.
If you are facing a shareholder dispute, you will want to know how each works so that you can better decide which is right for you.
Mediation versus Arbitration
While both mediation and arbitration take the negotiations out of the courtroom, they are fairly different. Sometimes they can be used with litigation. Both do use a third party to oversee them. But, mediation often has a professional mediator, while arbitration uses a judicial authority. Arbitration is binding; therefore, the decision made by the arbitrator in your shareholder dispute is final. In mediation, the decision is not always binding.
Arbitration can also involve a panel of arbitrators. They will work like judges, even though they are not judges. You will present your case, your shareholders will present theirs, and then they will make their ruling.
Mediation is simpler and is more about finding common ground between the two parties. It will involve a lot more back and forth negotiations, but everyone has a common goal: to come to an agreement that is fair for both parties.
Mediation: A Growing Trend
More businesses use mediation with their shareholder disputes. Mediation, especially in lawsuits, can actually reduce court dockets, trials, and are cost effective for both parties. In the state of Florida, courts require lawsuits to attempt mediation before being heard in front of a judge for that very reason.
You Still Need a Business Attorney
While mediation and arbitration are meant to make the process easier and open up the doors for communication, you still need a business attorney to represent your interests. An attorney can be present for meetings with arbitrators, present your case to mediators, and even handle negotiations while you are at work.
Contact a Business Attorney Today
While you may think you can do it alone, don’t. Business attorneys protect your business in mediation and arbitration situations and ensure that you receive a favorable outcome.
Campbell Law Group can assist you with your arbitration and mediation. Contact one of our skilled attorneys today for a no obligation consultation at 305-328-9506.