Commercial ADR is used to resolve business disputes without litigation between two or more parties. It is informal and reduces the cost and time spent resolving a dispute. Methods include both arbitration and mediation, which differ a great deal in practice, but allow for creative solutions that might not be an option when litigation is used to settle a dispute.
In arbitration, a neutral third party acts as the judge and jury. He or she hears both sides of the dispute, reviews the evidence, and renders a decision. Both of the disputing parties in commercial arbitration are represented by attorneys. In many instances, arbitration is the chosen means of settling a dispute before one even arises – business contracts often include arbitration clauses that allow both parties to agree that will be the method used to settle any issues that arise in the future. Commercial arbitration in California can be mandatory or voluntary at the decision of the parties involved.
Commercial mediation is also less formal than litigation, but the process differs a great deal from arbitration. In mediation, the disputing parties are in control of the outcome. This means mediation could end without a resolution and everyone involved will be forced to attempt another means of resolution. Commercial mediation has a number of advantages, including privacy, control, and the opportunity to create custom-made resolutions.
If you are involved in a commercial dispute in California and you believe ADR could help you settle the matter quickly and efficiently, Daniel Yamshon can help. To learn more or to schedule a consultation, contact Daniel at 916.446.4817 or by email at firstname.lastname@example.org.