Texas business owners like you know that building bridges is crucial to success. Burning bridges, on the other hand, can lead to unexpected complications and troubles. But unfortunately, there are some situations in which you cannot avoid disputes.
When a dispute happens, you must decide how you want to solve it. Litigation is one possibility. But this may burn your bridges in addition to taking up your time and money. What are your options, then?
Mediation vs arbitration
FINRA looks at an overview of arbitration versus mediation. These are two types of dispute resolution that often get lumped together. But they are different, and serve different purposes. First, a mediator does not hold the same responsibilities an arbitrator does. With arbitration, an arbitrator will listen to all sides of an argument. Based on evidence and testimony provided, they make a decision on what to do next.
Dispute resolution with mediators and arbitrators
Mediators do not have a say in how you handle the dispute. They make suggestions and they voice their opinions, but they do not decide what you will do next. People prize them for being able to provide a neutral perspective. Also, most mediators have training in dispute resolution. They can deescalate situations that begin to get out of hand. They help all parties stay on task and avoid the eruption of fights during discussions.
If you wish for a more solid idea of what to do from someone else, arbitration is your best bet. If you want to work collaboratively with a neutral party, you may want to pick mediation. It depends on your unique situation.