Texas business owners like you want to avoid disputes where possible. But sometimes, disputes are unavoidable. If you end up in one of these situations, what do you do? You must turn to tools of dispute resolution and find what works best for you.
Arbitration and litigation are two potential options, each offering its own benefits. What you choose depends on what you value for any given argument.
The appeals and downsides of litigation
The Balance takes a look at the differences between arbitration and litigation. Litigation is the legal process in which you take a dispute to court. There, the judge will hand down a decision based on the information all parties provide. This decision is legally binding. It is not easy to appeal or reverse the decision of a court, too. But litigation can cost you a lot of time and money. On top of that, the details of your dispute are public.
The benefits of arbitration
Arbitration allows you a little more privacy. With this, an arbitrator hears your case and hands down a decision. This decision is also legally binding. But you do not have to present in a court or go through the steps of litigation. You do not have to deal with the procedural or statutory rules, either.
For saving time and flexibility, arbitration wins out. You may also select your arbitrator, where you do not get to select your judge if you take the case to court. Also, arbitration often involves fewer bad feelings between parties. This is crucial for business owners like you. This is especially true when you rely on connections for a flourishing business.