Disputes with customers, vendors or other parties affiliated with your Texas company may result in significant financial losses if not taken care of properly. In addition to actual losses, conflicts might also cause damage to your company’s reputation, which could be harmful both now and in the long run. Fortunately, there are many ways to resolve a dispute that might keep any losses to a minimum.
Start with an informal conversation
In many cases, solving a problem takes little more than a good faith conversation with the aggrieved parties. By acknowledging their viewpoint, it may be possible to work toward a solution that everyone can be content with.
For instance, you could agree to give your workers extra time during the holidays or give customers discounts toward future orders in exchange for dropping their complaints. If you have a problem with a partner, a conversation may be enough to resolve misunderstandings and avoid straining an important relationship.
Mediation or arbitration might be effective options
Mediation or arbitration can be thought of as a hybrid between informal talks and formal litigation. During mediation, you work with a neutral party who seeks to facilitate a conversation. If an agreement is reached during mediation, its terms are generally binding on all parties once signed by the court. Arbitration is similar to a trial as you can present evidence to support your case. However, unlike mediation, the arbitrator will issue a ruling on each party’s behalf that is binding and generally cannot be appealed.
Is litigation necessary in your case?
Litigation is generally an option of last resort when resolving business disputes because neither party has any control over how a judge will rule. Furthermore, a trial may take years to complete and cost tens of thousands in legal fees and other costs.
Ideally, you’ll show some degree of understanding when resolving a business dispute. In many conflicts, agreeing to a compromise solution is less expensive and less harmful to the brand than opting for litigation.