Mayhall Fondren Blaize

Should you consider arbitration to resolve business litigation?

Informal efforts to resolve disputes with another Louisiana company or individual could fail, and filing a lawsuit could be the next step. Even so, spending the time, money and effort to go to trial might not be the best way to resolve the business litigation. It could be worth exploring the possibility of arbitration to avoid a costly and time-consuming court battle.

Arbitration is an alternative method of resolving disputes that involves one or more independent third-parties who make the decision regarding how the disagreement will be resolved. Unlike mediation, the results of arbitration are typically binding on the parties, which means that the decision is final, and the matter cannot subsequently be taken to court. This allows the parties involved in the dispute to know that there will be a resolution and an end to the matter.

Arbitrators can be appointed by the parties, other arbitrators or by the court. Arbitration can resolve issues between two companies, between consumers and companies or between employers and employees. This method of resolving disputes allows for greater privacy for the parties, faster results and greater convenience, along with a certain amount of flexibility.

Even though this method of resolving business litigation does not involve the courts, it would be a mistake to attempt to go through the process alone. Evidence and testimony will still need to be presented, and there are still rules that need to be followed. If a Louisiana company is interested in pursuing arbitration instead of going to court, it would be a good idea to discuss the matter with an attorney before moving forward.

Source: mediate.com, "What is arbitration?", Accessed on Dec. 17, 2016

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