Individuals and businesses in New Jersey which have contract or other business disputes will want to count the costs of pursuing their issues in court.
It may be tempting to spare no expense on winning, especially if one feels strongly about their cause. However, the reality is that businesses need to think carefully about their bottom line.
No matter how careful one is, civil litigation costs money, time and stress. It could also require a company to devote its employees’ time to defending or prosecuting a lawsuit.
Also, any litigation is risky. No matter how strong a business’s evidence and argument might be, there is always a chance that a judge or jury just will not see the case in the same light.
A disastrous court verdict can in the worst-case scenario ruin a business’s financial future and may even shutter the business altogether.
Saving on costs and cutting down on risk are big reasons why Essex County businesses might want to think about trying mediation or arbitration to resolve their disputes.
Arbitration and mediation can save costs, cut down on risks
Sometimes, a business may have to use arbitration or mediation because of contractual requirements. Courts may also order those engaged in a commercial dispute to try mediation before going forward with a lawsuit.
Both arbitration and mediation save costs. They are designed to be more efficient than going to court. In arbitration, for example, a person who is typically a legal professional or someone with expertise in a given field will hear each side’s case and make a decision.
There is less emphasis on rules or processes in arbitration, which makes it a faster, more cost-effective approach. On the other hand, businesses should remember that they may not be able to get out of an arbitrator’s decision even if they think it is unfair.
In addition to saving costs, mediation also cuts down on the uncertainty of going to court. The reason is that mediation will involve a third-party mediator working with those involved in a lawsuit to reach a compromise.
The process is confidential and voluntary.
Mediation gives the sides a chance to resolve their differences on their own agreed terms. No side should get everything they want, but there is also little chance of either side facing a terrible legal result.
Mediation and arbitration are not right for every commercial dispute, but New Jersey residents should consider them among other alternatives.