As they continue to grow and thrive, most businesses in the Atlantic City area will, at some point, be involved in a legal dispute.
Legal issues can press a business from many directions. These disputes will inevitably cost a business time, energy and money. They also can put stress on management and the overall operations of the businesses.
A bad result at the end of a dispute can lead to serious financial damage to the business.
Alternative dispute resolution can help a business stay out of the courtroom
Alternative dispute resolution, or ADR, refers to a number of different ways businesses may use to resolve a dispute outside of the courtroom. ADR grew in popularity as the caseloads of courts expanded. Some courts may even require parties to a lawsuit to try ADR before they schedule a trial.
Likewise, many businesses will insist on including in their contracts an agreement that if there is a dispute, the parties will use ADR.
Two common types of ADR are mediation and arbitration. Mediation involves the two sides trying confidentially to negotiate their dispute with the help of a trained mediator.
One advantage to mediation is that the parties ultimately get the final say on how they work out their differences.
Arbitration works much like a trial in front of a judge, but the rules and procedures are much simpler. The decisionmaker’s focus is to listen to each side’s position and make a decision without as much regard for formalities.
Cost savings is a big advantage to ADR
Businesses always have to be concerned about their bottom line, and this is true in the midst of any legal dispute. ADR tends to save significantly on attorney fees and other costs, and it also might mean a business ultimately devotes less time to resolving a legal problem.
ADR is not right for every case, but New Jersey businesses with a legal dispute should certainly consider it as an option. ADR can help control a business’s costs as they face possible legal issues on multiple fronts.