Commercial ADR includes both types of alternative dispute resolution which are mediation and arbitration. Legal disputes involving real estate in San Francisco often end up being settled out of court before going into litigation. Although this might sound like a better method of resolution than going through a trial that lasts for months or years, a lot of time and money have already been invested by this point. This is the reason that alternative dispute resolution (ADR) is preferable to litigation, even if the case never goes to trial. Daniel Yamshon is an experienced mediator and arbitrator with a successful history in providing clients with commercial ADR services.
The Appeal of ADR
Increasingly, companies end up in dispute resolution because they place an ADR clause in the real estate contract. The potential for a fast and less costly resolution to any legal issue that should arise is tempting to many businesses. One reason for the enthusiasm is the potential fees that will go to attorneys and court costs in litigation. Another is that the outcome may be even more costly to them than they imagined. Many times, court cases have resulted in high fees for litigation while the real estate deal over which the dispute is centered is worth less than these costs.
Interruption to Business Operations
Another expense incurred by litigation is that to the business through loss of operations. In real estate, businesses are always looking ahead to the next deal. When they are caught up in litigation, however, it is difficult to move on to the next deal when a failed real estate deal is already taking a large portion of the business’s time and money.
ADR services used to resolve commercial real estate disputes include both mediation and arbitration. One significant difference between the two is that mediation is non-binding while arbitration is binding. In mediation, the parties must agree on a resolution before it is agreed to and binding. In arbitration, the arbitrator acts as judge and jury, making the final decision. There are some types of cases which are best resolved through one method or the other. Either is preferable to litigation in which a judge makes a decision that may not be acceptable to either of the parties involved.
Commercial real estate disputes are often complex and beyond the scope of understanding by a judge or jury. This is the biggest reason that litigation often leads to unsatisfactory and unpredictable results. Either party may have the right to appeal the decision, only to enter into a longer period of time in the courtroom that will take even more time and money. The expertise of the mediator or the arbitrator in commercial real estate will determine the success of the dispute resolution process. An expert in the field will eliminate the time needed to educate a judge or jury and will help keep the focus of the process on the most important issues.
If you want the best resolution for your San Francisco commercial real estate dispute, contact Daniel Yamshon. Ask us about the advantages of our ADR services at 916-446-4817.