If your Texas business becomes embroiled in a dispute with another entity, an employee, a customer or some other individual, you have two legal options for resolving the matter: Litigation and alternative dispute resolution. Litigation, which involves going to court and arguing your case before a judge, is time-consuming, emotionally draining and expensive. ADR such as mediation and arbitration, on the other hand, can be just the opposite. FindLaw explains why you should choose ADR over litigation if the option is available to you.
For one, you save considerable time when you choose ADR over litigation. According to the statistics, 95% of all federal lawsuits settle outside of the courtroom. You can save months or even years of hashing it out in the courtroom by implementing and pursuing an ADR strategy.
Two, ADR allows you to save on costs associated with litigation. When you go to trial, you must abide by the rules of the court, which are often too cumbrous and time-consuming to yield cost-effective results. Take the discovery process, for instance—the courts require both parties to produce all information likely to lead to the discovery of admissible evidence. Finding all information related to a particular event can be a tedious and costly endeavor. ADR can help you reduce or even eliminate the time and costs associated with discovery and reach a fair resolution early on.
Three, ADR obtains results. Even complex and emotionally charged cases in which parties believe a settlement is an impossibility can benefit from alternative dispute resolution. This is evident in the fact that ADR has been used to settle high-stakes cases across the nation, including those involving RICO claims, securities fraud, environmental disasters and large business disputes.
Finally, ADR can help you preserve your business relationships. The hostility that characterizes litigation often results in irreparable damage between parties. However, when you work through the dispute and toward a resolution through calm and mediated discussions, you can prevent the development of hard feelings and preserve a respectful relationship with the other party.
This article should not be used as legal advice. It is for educational purposes only.