Litigation isn’t the only way to resolve a legal dispute. Rather than risking a lengthy and expensive court battle, parties may attempt to resolve their differences by agreeing to participate in alternative dispute resolution. Common alternative dispute resolution methods include mediation, negotiation, and arbitration. In this article, we examine the many benefits of alternative dispute resolution.
What Is Alternative Dispute Resolution?
Alternative dispute resolution is a process by which parties attempt to resolve legal disputes without resorting to litigation. Common types of alternative dispute resolution include arbitration, mediation, and negotiation. As we discuss below, there are several reasons that parties often prefer alternative dispute resolution to litigation.
Alternative Dispute Resolution Benefits
Collaboration: One of the main benefits of alternative dispute resolution is that, unlike litigation, alternative dispute resolution is usually a collaborative process. Parties that opt to participate in alternative dispute resolution attempt to understand each other’s positions and reach an agreement without court intervention.
Cost: Litigation can be expensive—very expensive. This includes direct costs, such as the cost of conducting discovery, which is the process by which parties to a dispute obtain relevant information from each other, and indirect costs, such as the time a business spends sending its principals to depositions and gathering and preparing documents. Alternative dispute resolution greatly reduces costs by providing parties with a more streamlined process.
Speed: Part of what makes litigation so expensive is the amount of time it takes. A single court case can take years to resolve. Alternative dispute resolution drastically reduces the amount of time it takes to resolve a legal dispute, as parties are free to set an arbitration date that they find acceptable.
Privacy: Court cases, opinions, and judgments are usually public record, which means that anyone can access them. Alternative dispute resolution, on the other hand, is a confidential process. When parties settle a dispute through arbitration, no public records of the negotiation meetings or final settlement amount are created.
Neutrality: Finally, alternative dispute resolution is a process directed by a neutral third party called an arbitrator. The arbitrator, who is selected by the parties, has no personal interest in the outcome of the dispute. In addition, the parties may select an arbitrator who has special knowledge of the area of law at issue in the case. This helps to ensure a fair, objective decision.
New York and Long Island Business Dispute Attorney
If you’re involved in a business dispute in Long Island or New York, you need an experienced business dispute attorney on your side. Regardless of the structure of your business, our knowledgeable Long Island and New York business dispute attorney will provide you with the legal guidance necessary to resolve your business dispute. Whether you need to initiate or defend a claim, please contact us to schedule a consultation with our business dispute attorney.