Resolving Disputes: A Brief Guide for Business Owners. We all know that running a business is not easy and when you add in the many complex relationships to the mix, commercial disputes are an inevitable part of every company’s life; when they happen, you have a choice as to how to deal with the issue however, so you don’t lose time, that you deal with them quickly and effectively. If not handled well, commercial disputes can have a significant impact on your business, including harm to client and employee relationships, damage to reputation and loss of time, resources and money.
While the litigation process remains the most common way of resolving business related disputes it would be better to avoid litigation for many reasons but mostly because it is expensive and time-consuming. Alternative ways of resolving disputes or ADR, such as arbitration and mediation, in many cases offer a less disruptive and costly way to settle matters. However, where legal proceedings are unavoidable it is important to focus on achieving the best commercial outcome. Remember, the aim of litigation is to solve a problem and provide a solution.
The most effective approach is to create and consistently use precise, written agreements and to have a clear understanding of your legal obligations. An example of this is in the context of employment law, where the contract of employment sets out clear and precise terms and responsibilities of both employer and employee. Clarity of terms and legal compliance are key factors in avoiding commercial disputes.
It is also important to manage the risk of a dispute occurring where possible. For example, if a customer has not paid, you should be proactive in trying to resolve the issue before it can escalate and put measures in place to reduce any harm to your business in case the matter does worsen.
In many situations, litigation is not the only option for resolving business disputes. Alternative Dispute Resolution (ADR), including mediation and arbitration, is often a better fit for the parties involved and the issue at hand. Indeed, it is not uncommon today to see businesses include terms in their contracts requiring disputes to be dealt with by ADR. The benefits of mediation, arbitration and other forms of ADR are, generally, cost, confidentiality and speed.
Mediation occurs when both parties agree to use a neutral third party to resolve their issues. The parties decide the terms of the agreement with the mediator’s assistance. Mediation agreements are not automatically legally binding but can become so if both parties consent.
The Mediation Act 2017, effective January 1, 2018, encourages parties to settle disputes through mediation before resorting to court. This Act establishes mediation as a statutory alternative to court proceedings, aiming to reduce costs in many disputes.
In arbitration, the arbitrator’s decision is legally binding, governed by the Arbitration Act 2010. You can represent yourself, but legal representation may be beneficial.
We regularly handle commercial disputes. Our solicitors stay updated on legal developments and prioritize client communication while addressing their needs. We understand legal disputes can drain resources, so we strive for outcomes that minimize future legal risks.
Our dedicated Commercial Dispute Team comprises of James Sherwin, David O’ Riordan, and Elaine McNally.
Visit their individual pages on our website and their LinkedIn profiles to find out more about their qualifications, experience, expertise and testimonials.
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