Partner
If you have a business partnership dispute, you may be reluctant to engage in litigation and wonder what other options exist. Is litigation the only path forward? No. Depending on what you’re seeking to get out of a dispute resolution, there are other strategies you can attempt before settling on litigation.
Regardless of which option you choose, an experienced California business law attorney can help. They will ably represent you and your best interests throughout any partnership dispute.
Mediation
Mediation is often the first step in partnership disputes as it’s one of the most cost-effective options. In mediation, a neutral third-party mediator facilitates negotiations between the parties. However, the mediator makes no decision on the case. It’s up to the parties to come to an agreement. The mediator assists by offering suggestions that may help the parties agree.
Some of the main benefits of mediation are its confidentiality, cost-effectiveness, and flexibility. Discussions are confidential and cannot be used in subsequent litigation so that both sides can have an open dialogue. Mediation is generally less expensive and less time-consuming than other options. And the parties can tailor the mediation process to fit their needs.
Additionally, because the mediator does not make a final decision, the parties have more control over the outcome than they would in some other types of dispute resolution.
Arbitration
Arbitration is a more formal process than mediation but shares some similarities. For example, one or more neutral third parties oversee the process. However, those third parties are arbitrators rather than mediators.
Arbitrators have the power to provide a binding decision enforceable by a court. They also may have specific expertise that’s relevant to your dispute. For example, an arbitrator may be a retired business law attorney who specializes in the kind of dispute you’re having.
While arbitration is often more efficient than litigation, it can also be more expensive than mediation. This is because hiring an arbitrator tends to cost more than hiring a mediator due to additional arbitrator fees, purchasing transcripts of the proceedings, and arbitration filing fees.
Collaborative Law
Collaborative law is like mediation but without a mediator. Under this approach, both sides and their attorneys meet to negotiate a resolution without a neutral third party.
Because there’s no third party, collaborative law can be less expensive than mediation and arbitration. However, it also relies on both parties being committed to finding a middle ground. If either party wants to emerge from the resolution as the “winner,” a collaborative approach may not work.
Business Coaching and Consulting
Sometimes, dissolving the partnership isn’t the best option. Your dispute with your business partner(s) may be minor enough that you can resolve it without one party leaving the business or having the business split.
Business coaches and consultants can use their outside perspectives to identify the underlying issues of your dispute. They can also work with you to improve your communication and conflict-resolution skills.
Ultimately, this approach could leave the business in a healthier position than any other option.
Litigation
Litigation is often the last resort for various reasons. It can be costly and time-consuming for everyone involved. And by its nature, there will usually be winners and losers. After litigation, it’s often difficult to have a working relationship with the other party.
That said, litigation is the best option for some business disputes. It can provide a wide range of legal remedies, including the dissolution of the partnership, division of business assets, and compensation for damages suffered by one party.
The judge’s ruling at the end of the litigation will also be legally binding. If one party doesn’t agree with the outcome, they may be able to file an appeal.
California Business Law Attorney
If you have a partnership dispute in California, contact the law offices of Schneiders & Associates for a consultation. One of our knowledgeable business law attorneys will evaluate your case and suggest which dispute resolution strategy might work best.