Everything You Need to Know About Commercial Dispute Resolution

Legal disputes can be a complicated business and getting these scenarios right is of course your top priority. Often people make mistakes when it comes to this situation because they don’t fully understand the issue at hand and how to solve it. Naturally, this can cause a myriad of problems later down the road so this is where we come in. In this blog, we will run through the nuances of commercial dispute resolution and discuss what to do in this circumstance. So, keep reading to find out more.

Law firms must be able to handle a variety of situations and one of the most important of these is commercial law. These kinds of disputes can result in companies and people losing a considerable amount of money which is why everything must be handled with experience and care. Here at Paddle and Cocks LLP Solicitors we have a whole host of experience and know exactly how to deliver a brilliant service. What's more, we have plenty of trained industry professionals on hand to give you the expert advice and help that you rightly expect. The question is though, what is a commercial dispute and commercial dispute resolution? Find out more in this quick blog! 

Essentially dispute resolution is a phrase used in commercial law to describe resolving arguments between businesses. This could of course refer to a variety of things and many businesses often require some legal assistance over the course of their trading years. Dispute resolution is designed to come to an agreement as soon as possible and help each party walk away in the fairest way possible.



Alternative dispute resolution

There is also alternative dispute resolution. This refers to a legal firm bringing two businesses together to come to an arranged agreement without going to court. Clearly, there are a few benefits to this method which might be important to discuss. Naturally one of the first things that spring to mind is the cost-saving benefits. Without the need to go to court, you will save a huge sum of money on legal fees. What's more, you’ll save a lot of time so you can go back to your business!

There is also a huge variety of other forms of dispute resolution so keep reading to check them out and find out which may be best for your own scenario. Remember that every business dispute is different and you need to carefully consider which approach you should make. The last thing you and your company want to do is make this issue go on for longer than it needs to. After all, the longer the dispute lasts the more money it will cost your company and the less chance you have of fully resolving the issue. So, ensure you choose the right method and help the process develop.

Pre-action discussion

This is often the first point of call during a dispute between two companies and if all is well, you may even find a solution at this stage. Here your lawyers will meet with the other party and discuss the issues at hand. Often both businesses will want to avoid costly legal action and may well find a solution at this point. This will of course save you a huge amount of money but it will also clear up your time so you can focus on the company's proceedings.

Alternative dispute resolution

This method often occurs when an issue can not be resolved through pre-action discussion. While this is not strictly a legal challenge and the companies will not have to go to the courts, this is a slightly more serious measure than a pre-action discussion. There will be a series of actions which each party must undertake and finding a resolution can often take some time. However alternative dispute resolution does often conclude in a well-discussed compromise and the clarity of resolution is also extremely succinct. There are three different types of alternative dispute resolution so here we shall explain what they are so you can make an informed decision.

Mediation

Here the two parties will meet with a mediator. It is their job to encourage the two businesses to reach an agreement together and without any further legal proceedings. Naturally, the mediator will help those involved with passing documents and evidence between each other. However, the mediator should never express their own opinion; they are only there to oversee the proceedings and ensure everyone gets an equal say. Perhaps understandably this process is far less time-consuming than litigation and often it is in both parties best interest to solve the dispute at this stage to save both money and time.

Arbitration

Arbitration follows the same general narrative as mediation at first. Both parties meet and present their evidence while discussing the issues they have with the disagreement. Then the arbitrator will use their expert knowledge and experience to decide on a conclusion to the scenario. This concussion is generally legally binding and both parties must abide by the decision they make. However, an arbitrator usually has a touch more flexibility when it comes to the solutions they can offer which is why it can be a good choice for your business. There are still a few other examples of dispute resolution so keep reading to find out more!

Conciliation

This process is incredibly similar to meditation and involves all of the same people and processes. The only real difference is it doesn’t occur face-to-face. This option is often incredibly fast and effective so many businesses choose to try this option as a money and time-saving technique. Naturally, all companies want to save money and legal disputes can often end up costing huge sums which may affect your profits. So, one of the most effective ways to cut down legal fees is to use a method that takes the least amount of time possible. This is why conciliation is such a popular option.

However, it is vital to note that for many cases conciliation simply is not possible. Many issues are entrenched with a myriad of concerns so finding a solution without in-person discussion will be impossible. However, you will often be advised to try this method out first just in case you can find a solution.

Litigation

This is the last method of commercial dispute resolution and involves preparing a case to be put forward to a judge. Naturally, this is the most concise method and often brings the most reliable result. Most parties will only want to pursue this option if all of the other avenues have been explored and deemed impossible. This is because litigation is comfortably the most expensive option as it takes the most time to prepare and build a case for each side. This will also mean that your issue will take a long time to resolve which may impact your business.

However, litigation is often the last resort for some companies and in this circumstance, you should definitely seek litigation support. You will need a group of professionals to represent your company in court and build your legal case.

Why choose dispute resolution?

Essentially dispute resolution is much cheaper than litigation as you don’t need to pay for a myriad of legal fees and hidden costs. What’s more, you can still focus on your business which is of course the most important thing. You may also find that with litigation you don’t completely break down the relationship with your disputing parties and at some point, you may find it easier to reconcile. However, one of the main reasons to choose dispute resolution over litigation is that the method is tried and tested in resolving disputes between businesses and you can rely on us here Paddle & Cocks LLP Solicitors to ensure that you walk away satisfied.

If you need any commercial dispute resolution services, then here at Paddle & Cocks LLP Solicitors we can help. We have many years of experience in the industry and know exactly how to support you through this challenging time. We always ensure that you feel listened to so we can reach an agreement that you’re happy with. So, make sure to contact us today to find out more!