Could alternative dispute resolution help with a contract issue?

Could alternative dispute resolution help with a contract issue?

On Behalf of | Dec 4, 2021 | Business Law |

Perhaps your former employee signed a non-compete agreement when you hired them, and you want the courts to enforce it because they just tried to start a competing business. Maybe you have a supplier or service provider who failed to fulfill their contractual obligations to your company and caused a disruption to your business operations with serious financial losses.

Dealing with a breach-of-contract situation can quickly become frustrating. If the other party doesn’t want to correct the issue when you address it with them, you may feel like you have no option but to go to court.

Filing a civil lawsuit is a good way to let the other party know you are serious about enforcing the contract. However, you may still want to consider trying alternative dispute resolution (ADR) before you go to court.

How does ADR work in business contract disputes?

When you have an issue that you can’t resolve on your own, bringing in an outside professional can help. You and the other party, along with your lawyers can agree to try an ADR method like arbitration or mediation.

In arbitration, you hire an arbitrator to the serve a role much like a judge’s. They hear both sides of the situation and then determine what a reasonable outcome would be. In mediation, both parties work with a mediator who helps them compromise and find a solution that works for both parties. Once you file your lawsuit, the other party may be more open to negotiations.

Pursuing ADR can help you keep your costs lower and can preserve your privacy during a business contract dispute.