Small business owners are constantly evaluating new ways in which to control costs, reduce overhead, and increase profits. Unfortunately, disputes are an inevitable consequence of operating a business and sometimes this results in costly litigation. However, given the fact that roughly 95% of all lawsuits eventually settle, it is important to consider your cost-saving alternatives before rushing to the courthouse.
Alternative Dispute Resolution generally refers to either Arbitration or Mediation. Arbitration is generally the more formal of the two and is usually associated with a binding ruling. On the other hand, Mediation is usually non-binding and much less formal, often held in a conference room setting. This discussion will focus on the process of Mediation.