When it comes to contract disputes, the wronged parties are often quick to want to hold the party in breach accountable in court. In some cases, this could be the best solution-- but not always. Ultimately, litigation is slow, costly, and not ideal for every small to medium-sized business. In many cases, alternative solutions to contract disputes are much more favorable to both parties. Below, let's take a look at the different options available for contract dispute resolution.
Mediation involves a professional mediator trained in conflict resolution. Both parties meet with the mediator with their respective counsel to work out the conflict themselves with a non-adversarial approach. The mediator is not a judge, but instead, helps provide structure and neutral insight into the conflict that either side may not be able to provide. The outcome the mediator helps arrive at is non-binding, but the process does allow for both parties to find common ground and reach a compromise they are both comfortable with.
Arbitration closely resembles litigation but is less formal and less expensive. In arbitration, both parties submit their arguments to a neutral party (usually a former judge) who then makes a binding decision on the matter. Both parties have to agree beforehand that the process will be binding, but can also agree on appeal terms, as well.
Litigation should be the last option for any party looking to resolve a contract dispute. While court provides a forum that allows both parties to present their case to a judge and receive a binding decision, the process can time-consuming, adversarial, and expensive. Still, it is always advised that you retain counsel that is capable and willing to go to litigation if needed.
Is your small or medium-sized business in the middle of a contract dispute? Is so, Toppins Law Firm, P.C. can assist you. For more than a decade, our firm has helped businesses, corporate entities, non-citizen professionals, and employers navigate their legal needs and secure favorable solutions. We're ready to hear your story and start assessing effective, actionable options for your business today.
Don't hesitate to start pursuing solutions with an award-winning Houston business law attorney by your side. Call our offices today.