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Tennessee businesses may benefit from mediation or arbitration

There are many different types of disputes a business in Tennessee could have with employees or other businesses. It may seem like the only way to resolve these disputes is through litigation. However, before resorting to filing a lawsuit, businesses may want to consider some alternatives to litigation: mediation and arbitration.

In mediation, each party to the dispute will work with a mediator to try to reach a resolution. The mediator is a neutral third party, who serves as a facilitator. Unlike a judge, the mediator does not make a binding decision; instead, they help guide the discussions between the two sides in a manner that allows both sides to come to an agreement. Mediation is a private process, unlike litigation, and is often less costly than litigation.

Another alternative is arbitration. Through arbitration, each party will make their case to an impartial third-party arbitrator. Unlike litigation, formal discovery is not necessary for arbitration, and the legal rules of evidence do not apply. Each side will present their case and submit relevant documents, but, in general, witnesses are not called. Like mediation, arbitration is a private process and often results in a quicker resolution than litigation.

Litigation is necessary to resolve some business disputes, but businesses can save a lot of time and money if they consider other forms of alternative dispute resolution. Many businesses want to maintain their business relationships and do not want the dispute to affect their bottom line. Thus, mediation or arbitration may be options worth considering.

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