Dispute Resolution Methods: Eradicating Company Disputes

In a company, disputes and disagreements between employers, employees, business partners and customers are unavoidable. And once a dispute arises, it must be immediately settled because it has the more tendencies to ruin the company and even the reputation of the business itself. Hence, there are methods of dispute resolution that would resolve business-related arguments and disputes.

Business disputes may arise in various circumstances from formation and operation of the business to dissolution.

Usually, disputes occur because of management authority; profit sharing or matters which involve money such as capital contribution; unequal distribution of business properties and assets.

In addition, breach of contract, breach of non-compete closure and breach of non-disclosure agreement may result to business disputes.

Dispute Resolution Methods

Dispute resolution methods include lawsuit, arbitration, mediation, conciliation negotiation and ombudsman.

Lawsuit

Lawsuit is a civil action brought before the court from which the aggrieved party seeks legal and reasonable remedy. If the action became successful, judgment will be given in favor of the claimant and various court orders may be issued to impose a right, give damages or enforce sanction to compel an act or prevent an act.

Lawsuit involves dispute resolution of private law issues among persons, business entities and even non-profit organization. Conduct of lawsuit is called litigation.

Moreover, lawsuit may precede in a common law jurisdiction such as pleading, pre-trial, trial and judgment, appeal and enforcement.

Arbitration

Arbitration is the process by which the parties concurred or agreed to submit their disputes to an arbitrator or independent neutral third party. The arbitrator will be the one to consider the arguments and proofs and evidences from both sides, and then make a final decision.

This method of dispute resolution is commonly used in commercial disputes. Arbitration can be either voluntary or compulsory and can be binding or non-binding.

Mediation

Mediation is the procedure where the parties involved use an out-side party who would help them to arrive at equally agreeable settlement. To be able to do so, the out-side party called the mediator, will suggest unbiased proposal to help both parties.

Additionally, the mediator use proper techniques and skills to open or improve discussion between parties that would help them reach an agreement about the matter.

In mediation, the arguments of both sides of the parties involved are identified, and concepts and ideas are exchanged until a concrete solution is given by either the mediator or the parties.

Mediation is an efficient tool in resolving disputes because it allows the parties to find a solution without involving others and not spending money for legal expenses.

Conciliation

Conciliation is a procedure where the parties in dispute agree to use the services of a conciliator who will separately meet the parties in an attempt to resolve the parties’ differences.

Conciliation differs from arbitration because it doesn’t involve legal standing on its process and the conciliator has no authority to seek evidence, call witnesses, and make a decision. The main goal is to conciliate or make peace by seeking dispensation.

Negotiation

Negotiation is a form of dispute resolution where a dialogue is done to create an agreement upon courses of action to deal or negotiate for individual or to craft outcomes to satisfy various interests.

Ombudsman

An ombudsman is a high-ranking executive or manager of the company who has the right to facilitate internal disputes.

Ombudsman can address the problems of employees by giving them accessible and non-threatening way for seeking remedy when they have been wronged.