A dispute resolution, also referred to as dispute settlement, is a settling proceeding between two or more parties. This term is used in both private and commercial law as altercations can occur in both setups.
Resolving a dispute is an easy process. What can make it complicated is the procedure in which the dispute will be resolved. Different types of dispute resolution also have a range of factors that need to be considered, such as the cost, confidentiality, speed, and access.
In addition, you should also have to understand each of the types of dispute resolution to know which one will work for you best.
Without Prejudice Settlement
The first type we will talk about is the most cost-efficient type of dispute resolution, which is the resolution without prejudice. This resolution gives both parties the chance to settle their dispute freely with concessions.
Both parties do not worry about what they say during this settlement as all the words they will say will not be held against them in the court of law if the without prejudice settlement will fail in the end. However, you must not be complacent with this protection as it is not definite, and there are no exceptions.
What is beneficial with this type of resolution is that you will never have to pay anything as there will still be no litigation happening. Therefore, there are no court fees or other charges related to a lawsuit.
It can be considered the first step of any legal action taken out of a dispute, whether commercial or private. Whatever can be resolved at this stage will be settled to control the dispute and avoid it from getting more significant.
Negotiation
In negotiation, the parties to a dispute work together to try to reach an agreement that resolves their disagreement. Each party has its own interests and goals, and the goal of negotiation is to find a solution that meets the needs of both parties.
Negotiation can take many different forms, but the most common form is face-to-face negotiation. In this type of negotiation, the parties meet in person to discuss their disagreement and try to reach an agreement. This type of negotiation is often used in business and construction disputes. There are also legal aids from https://morrisseylaw.com.au/ and other commercial and corporate firms that help represent cases that are not easily settled through negotiation.
Mediation
The next type of resolution you can choose when disputes arise is mediation. During meditation, a third party will mediate in between to help both parties reach a consensus on their own. The third-party mediator will help with the agreement between the disputants to achieve a resolution.
Both parties should cooperate during the mediation preparation, and once a mutual agreement is reached, both parties are bound by that agreement. Expect the sharing of documents and presentations from both parties during the mediation process. However, this process is considered less formal and an expensive alternative for litigation.
The objective of mediation is to reach a settlement that both parties agree on. It is also an excellent way for both parties to vent their feelings and explore the complaint. Mediation will also let the disputants have a settlement or resolution that they cannot acquire in an arbitral court.
Arbitration
Suppose both mediations and without prejudice will not work in resolving a dispute. The disputants can move forward to arbitration. In arbitration, a third party will act as a judge and be held responsible for settling the dispute between two parties.
The arbitrator should listen to all sides involved and accept all presented evidence and arguments of each side. After all evidence and arguments have been presented, the arbitrator will provide a binding decision.
Any disputants can negotiate the arbitration hearing process, especially whether lawyers will be allowed during the presentation of the evidence. The decisions of the arbitrators are confidential and can not be appealed. Arbitration is still a less expensive option than litigation.
Litigation
Now comes the hardest and the most expensive type of dispute resolution, litigation. Litigation involves a defendant and a plaintiff facing off in front of a judge, a jury, or both in the court of law. The judge and jury are responsible for deciding the outcome of the resolution by weighing the evidence and creating a ruling.
All the documents, information, and occurrences during litigation will be kept on record and will stay in the public records. When you end up in litigation, you should hire a lawyer as soon as possible.
You have to know that lawyers dominate the litigation process, resulting in a settlement agreement between the disputants. The agreement is usually settled during the preparation and pre-trial period.
Note that the first three terms mentioned above are all ADR or Alternative Dispute Resolution forms. All of these three are your options when resolving issues without a lawsuit filed against any party.
However, before you choose which resolution best fits you, you should have any contracts that rule the relationship of the disputants. Those contracts written ten years ago might include a clause that specifies how disputes should be handled if one arises.
Settle a Dispute Quickly
When caught in a dispute, it is best to resolve it quickly without reaching litigation. As much as possible, settle your issues sooner and have an open mind. Litigations are time-consuming and expensive. You do not want to get caught in paying all the fees if you can settle in early without payment and inconvenience.
