In the business world, requirements are accepted as the price of a game. But when the legal battle begins, the costs can be prohibitive. Committed in court for years, both parties can spend a fortune on litigation. Not surprisingly, dispute resolution has emerged as a viable legal option.
What is it?
Dispute resolution is defined as any dispute resolution method outside the courtroom. There are no judges, juries, and far fewer rules. In other words, this is a simplified version of the test, which is faster to the point. Although the laws vary by location, mediation, and arbitration are the two most common forms of dispute resolution lawyers Melbourne. Let’s discuss them individually for a moment.
Mediation
A purely informal legal option, mediation is, in fact, a negotiation process between the two warring parties. An impartial observer, who is called an intermediary, listens to both sides and tries to agree between them. This possible agreement may be accepted or rejected by either party. Only when both parties agree, a legally binding and utterly confidential agreement can be signed.
When is it used?
The main advantage of mediation over other resolution methods is its incredible versatility. The option was used in a variety of cases, from misconduct to multi-million dollar commercial litigation.
Arbitration
Much closer to litigation than mediation, arbitration allows lawyers to present evidence and argue before a panel that decides the case. They may not be judges, but arbitrators have the right to write a decision and recommend an arbitral award. The decision must be reviewed and approved by a third party before it becomes legally binding on both parties.
When is it used?
Since this does not depend on the mediator’s conviction that the transaction is concluded, arbitration is often faster. On average, they usually last only a few days, at most a week. Besides, the arbitration commission meets only for a few hours a day, while maintaining low legal costs. And last but not least, all opinions are NOT a public issue. This fact alone makes arbitration an attractive option for resolving commercial disputes. In recent years, disputes over securities, construction, and labor relations have been resolved quickly and quietly through arbitration.
Hire a lawyer
As this is a growing field of legal practice, inexperienced lawyers turn to dispute resolution in record numbers. The only problem is that most of them do not have direct knowledge of this highly specialized field. That’s why we strongly recommend that you look for a lawyer with dozens of dispute resolution cases. This is also a great advantage if you have international dispute resolution experience, as arbitration and mediation rules may vary from country to country.
Dispute resolution can help parties save time and money in commercial litigation.
