No one wants to get into a business dispute with a partner, but it is better to have a plan in place for these scenarios than it is to blindly hope no disputes ever happen. After all, even the smallest disagreement can eventually boil over into something heated if left unattended.
But when it comes to your dispute resolution, should you leap right to litigation? You might want to consider alternative methods of resolving your dispute first.
The role of an arbitrator
FINRA describes arbitration as one of many alternative resolution methods for disputes. Arbitration actually works in a way similar to litigation, though it has differences as well. In terms of similarities, arbitration involves taking your case to court. An arbitrator takes the same sort of role as a judge, presiding over the trial and listening to all parties present their arguments and evidence.
The arbitrator then has the authority to make a legally binding decision regarding what you and the other parties should do. You must abide by this decision in the same way you would follow the decision handed down by a judge.
Differing from litigation
In terms of differences, you do not need to actually have a full-court date. This means you do not need a jury or judge, and you do not need to pay the fees for a full court case. On top of that, court cases keep detailed documents about every case they see that the public can peruse at will. This means anyone can look into your dispute history at any time. Going for arbitration allows you to avoid this.