When dealing with disputes, it is possible to take the case to court right away. However, a quickness to go for litigation does not necessarily guarantee a good outcome.
In fact, more often than not, the good outcomes stem from alternative methods of resolving disputes. This often includes options like mediation or arbitration.
What is mediation?
FINRA compares both mediation and arbitration. These methods of dispute resolution avoid costly court battles, saving all parties time, money and privacy.
Mediation will often benefit groups who already have a good chance of resolving their dispute with as little interference as possible. Mediation involves talking through the issue with all members of the dispute, getting everyone on the same page and coming to a compromise everyone can agree on.
A mediator will oversee this process. They offer opinions and advice, but do not have the final say in how the group will resolve matters. They also have training in conflict management and de-escalation. This way, they can step in and ensure that no one gets out of hand in any arguments that may happen.
What is arbitration?
Arbitration, on the other hand, is a little more similar to litigation. An arbitrator also holds power similar to that of a judge in a court case. They listen to all parties present and take their evidence and arguments into consideration. Then, they hand down a decision that all parties must abide by.
This option has more structure, so it is often valued by people with heated disputes or disputes that involve high amounts of assets. Either could potentially benefit anyone seeking to resolve an argument.