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How to Resolve Business Disputes Without Any Litigation

litigation free dispute

Business disputes, no matter how complex, can lead to financial and other losses if not remedied appropriately. For many businesses, heading to court is often the last resort simply because of how expensive and time-intensive it can be.

Before jumping to the financial and time-consuming consequences of litigation, there are many steps beforehand that you can turn to. Let’s take a look at some of the most effective methods to resolve business disputes without resorting to litigation.

Why Do Business Disputes Arise?

Even the most successful business will endure its fair share of business disputes. Disputes can arise from a variety of factors, including the following:

  • Vision differences
  • Loss of interest in the business success
  • Disagreements on policy or violations of contract
  • The diversion of business opportunities to competitors
  • Businesses’ interference or disparagement of everyday operations
  • Breach of contract
  • Increased liability

As many ways as there are to encounter a business dispute, there are just as many ways to resolve them. Luckily there are several options available to you if you are looking to resolve a business dispute without any litigation. Let’s go over some of these common methods and explore why one method may offer more benefit than another.

Revamp Training

Sometimes the best way to solve company-wide business practice disputes is by assessing current training practices and revamping them so that all individuals understand their role in the company and the expectations for mission, vision, and day-to-day operations.

In many cases, the simplest step for conflict resolution is by getting everyone on the same page so that any prior misunderstandings are resolved. In many cases, disputes arise from misunderstandings, and if miscommunication goes unchecked, this can foster even more confusion and frustration.

Negotiate a Dispute

One of the early steps to resolving a business dispute is through negotiation. Negotiation between you and the other party can help you resolve differences that will allow you to restore focus to the success of the business.

Negotiation will require sacrifices for both parties in order for a resolution to unfold. When navigating negotiations, it can help to have a third party like an unbiased company executive, an industry expert, or a business lawyer facilitate the negotiations. This expert will serve as the mediator so that both parties can express their concerns and desires to work toward a resolution.


Much like the process described above, mediation involves incorporating a third party to facilitate discussions between both parties. This third party should be mutually agreed upon and offer a level of expertise or understanding of the industry or business you are in.

Mediation is one of the most cost-effective procedures as it costs very little compared to full-blown litigation. In addition to being cost-effective, it also tends to be a fair and equal method of achieving a resolution.


A step above mediation is the arbitration process. This process is entertained when both parties cannot feasibly negotiate in a productive manner. Instead, a third-party arbitrator will serve as a sort of private judge and determine the nuances of the situation in order to reach a fair outcome. The end result of arbitration is a contract in which both parties agree or disagree on certain conditions.

Arbitration typically comes with a fee, but it is not nearly as costly as traditional litigation may be. One downside of arbitration, however, is that your third-party arbitrator might not have a thorough understanding of your business or industry best practices. This could lead to a misunderstanding of the circumstances that might cause more harm than actual good.

When to Seek Legal Guidance

In unique cases, it can help to understand your legal rights and options if you are experiencing a business dispute. Seeking legal guidance does not necessarily mean you will be taking legal action. However, being aware of available options can help you make the best choice possible.

At Leigh B. Meineke Law Firm, our team is committed to helping all our clients reach the clarity and success they are looking for in their business relationships. Speak with our legal team today by booking an initial consultation, and get a better understanding of what it means to have legal guidance you can count on when it comes to your business dealings.

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