My Business is in a Dispute. What Can I Do?

If you find that your business is in a dispute, you will want to assess all of your options before proceeding. There is a wide variety of options available to you through which you can resolve your dispute. It is a good idea to familiarise yourself with these options first. This article will explain some of the options that you can take and when it may be appropriate to take those options.

What Do I Need to Know First?

The first question you should ask yourself is who you are in a dispute with. If it is a party with which you have an existing contract, then you should first check that contract. You may find that there is a dispute resolution clause. A dispute resolution clause is a term of a contract which outlines what will happen in the case of a dispute. 

If there is no dispute resolution clause, then you might benefit from seeing which processes your business has used in the past to settle similar disputes. In the alternative, you may also want to know which dispute resolution process is best suited to your current situation. 

To know which dispute resolution process is best for your situation, you will want to consider factors such as whether you:

• have a lot of time or not to resolve the dispute;
• would like the outcome of the process to be binding;
• are willing to go to court and risk high legal fees;
• want strict rules of evidence to be applied;
• have an issue with seeing the other party you are in a dispute with; and
• value having control over the outcome of the dispute.

The rest of this article will consider some options that are available to you. 

Going to Court

Taking your case to court is a good way of making sure that you resolve the dispute in line with the law and previous court decisions. Going to court involves arguing your case before a judge, who will decide your case based on previous cases. This is beneficial if you value predictability in your dispute. Further, it may be a preferable option if time is not an issue and you have a strong and arguable case. However, before committing to court proceedings, you will want to keep two key points in mind. 

First, you want to make sure that you have sought legal advice to know whether going to court is appropriate for your situation. For example, you may be better off settling a small claim outside of court. Second, you will also likely want to attempt mediation first. Indeed, a court will generally suggest that you try mediation proceedings before starting a full court case. 

Mediation

Mediation is one type of ‘alternative dispute resolution‘ (sometimes referred to as ‘ADR’). Alternative dispute resolution refers to any form of dispute resolution which does not involve going to court.

Mediation, in particular, is where an impartial mediator is appointed to help the parties in a dispute come to an agreeable solution. This process varies from going to court because, ultimately, how the dispute is solved is up to you. Mediation provides you with greater control over the outcome of the dispute. It can also be a faster way of resolving the dispute (given that court proceedings can take several years in some cases). 

Additionally, the mediation process is strictly confidential (unlike a public court hearing). Therefore, its outcome can only be shared if every party to the mediation agrees to it. Finally, a ‘settlement agreement’ (which concludes the mediation process) can be legally binding, which might be reassuring for your business.

Arbitration

Arbitration is another form of dispute resolution. It is similar to court proceedings because you will present your case to an independent arbitrator appointed by both parties (who performs a similar role to a judge). However, unlike a court proceeding, the results of the arbitration will be private and confidential. 

Appointing an independent arbitrator can be both a benefit and a drawback. It may be a drawback because it does not guarantee the same rigour and quality as the court system. As a result, arbitration may be said to produce fewer quality decisions. However, it can be beneficial if the arbitrator is a specialist in the subject area that the dispute involves. This will be especially so in commercial disputes where the arbitrator is a commercial specialist. 

Key Takeaways

All in all, if your business is in a dispute, the first thing to do is check the contract you have with the other party. You may find a dispute resolution condition in the contract in the event of certain facts, in which case you may have to adhere to that term. 

However, if there is no contractual condition, you will want to assess what your business is looking for from the dispute. If you want a fast resolution, you will likely prefer arbitration or mediation to a court proceeding. In any case, you should seek professional legal advice in the case of a dispute before bringing legal action. Professional legal advice can help you ascertain the likelihood of you winning in a court case given the factual context of your dispute.

If you need help with navigating a business dispute, our experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions