When you get into a dispute with a business partner, you want to take a step back and make sure that you evaluate the situation carefully before you do anything. The last thing you want is to damage your ties, which are the lifeblood of a healthy and growing business.
Instead of going straight for litigation, consider some alternative methods of resolving your disputes.
The downsides of litigation
As FINRA discusses, you have several options for resolving business disputes. You can set aside litigation at first, as it has several large downsides such as the cost and the amount of time it takes. On top of that, all court cases get recorded in public record, so anyone can go back and read over the details at their leisure. This can pose a public relations nightmare, depending on the contents of the case.
Mediation and arbitration
Litigation is one of the fastest ways to end up with bad blood between you and your partners. Instead, try to reduce this bad blood by looking into mediation or arbitration. Mediation works best if you already think you could resolve the dispute on your own but simply need a little guidance. A mediator can provide that, ensuring that you all get heard. They can provide unique perspectives and opinions, too.
Arbitrators act more like judges. They listen to your hearing and decide what to do after. All parties must abide by their final ruling. However, you still get to avoid all of the worst parts of litigation as mentioned above. Even this can help potentially preserve your business ties enough for you to fix them later.