No one wants to get into disputes with their business partners, but it is an unfortunate reality that can and does happen.
When going through this difficult situation, it is important to do whatever possible to keep your case out of court. But why is that?
Reasons to avoid the court
First of all, litigation is expensive and time-consuming. Plenty of people will burn a deep hole into their savings in order to take someone to court, only for the case to drag on for months or even years.
On top of that, taking a case to court immediately opens all of the involved information to the public. If you want to keep your personal matters personal, then you should avoid litigation if possible.
Finally, it is important to keep your business ties going as strong as possible for as long as they can go. Burning bridges by taking someone to court is generally not recommended.
Alternative litigation methods
FINRA speaks of the differences between arbitration and mediation compared to litigation. These are two of the alternative resolution methods that enjoy the most popularity.
Arbitration is closer to litigation. An arbitrator holds a similar amount of power and they can make a decision about a case that both parties will have a legal obligation to uphold.
On the other hand, mediation is a little more loosely formatted. A mediator does not have the same power, allowing the parties involved to work things out with their own members.
Either option has its potential benefits and drawbacks, but both offer benefits in lieu of litigation.