How Do You Resolve a Business Dispute?

Disputes can arise in businesses for all manner of reasons; from partnership disputes to disputes with employees to contract disputes to disputes with other businesses, there are a lot of conflicts that can happen in the business world. When a dispute does occur it will need to be resolved as quickly as possible because it could end up being disruptive to the business. There are many ways that a business dispute can be resolved but the help of a business litigation attorney will be needed to do so. 

A business litigation attorney will be well-versed in resolving all kinds of business disputes, so they will be able to provide a resolution that allows the business to continue running to its full potential. If you are involved in a business dispute and need help resolving it, then you should read more about how a business litigation lawyer can help you.

Methods of Dispute Resolution

There are three different methods of dispute resolution in business, some are preferable to others but the method of resolution will depend on the nature of the dispute. It may also depend on any agreements made by the parties in a contract on how they will resolve any disputes that arise among them.


With this method, the dispute is overseen by an unbiased and objective third party called the mediator. The mediator helps the parties involved in the dispute come to a mutual decision that benefits both of them. This is done by speaking to each party individually about the details of the dispute or asking them to come together so that they can have a discussion about said dispute. The mediator does not have the authority to enforce an agreement among the parties, meaning that they will have to go to court to make it official. Mediation has many advantages including the following:

  • The involved parties maintain control of the resolution process as well as its result.
  • Mediation can provide a faster and less expensive option than heading to court.
  • The mediation process is private so the dispute and resolution will both remain confidential.
  • The mediator might be able to propose a solution those involved in the dispute may never have thought of.
  • If maintaining a healthy personal or business relationship among the parties after the resolution is important, then mediation is the best method of achieving that result.


This is a more formal process than mediation but a less formal process than a trial. In fact, it is like a simplified, informal version of a trial. The purpose of arbitration is to come to a decision in a dispute, whereas mediation is a way to resolve misunderstandings. In many business contracts arbitration is a mandatory method of resolving disputes. 

Since arbitration is a simplified version of a trial, each party can argue their case and present any relevant documents to the arbitrator. Once the arbitrator has heard both sides of the dispute, they will make a decision that is binding, meaning that each party has to adhere to that decision. Arbitration is a good way to come to a fast resolution and it is far less adversarial than an actual trial.


This is generally the least desirable method of resolving business disputes because a trial can be expensive and time-consuming. And while the end result is binding, it is more likely to cause an irreparable rift between the parties because it is such an adversarial process. Nonetheless, if a dispute cannot be resolved via mediation or arbitration, then litigation is the inevitable next step. As with all court cases, the attorneys representing each party present evidence and witnesses to prove their case, which is decided by a judge and jury. 

Hire a Lawyer When Resolving Business Disputes

No matter how your business decides to resolve a dispute you will need an attorney to help you. Even the less adversarial methods of conflict resolution— namely mediation and arbitration— benefit from the presence of a business litigation attorney because they can help you to put together an argument and collect evidence if necessary. 

It goes without saying that a business litigation attorney is vital if the dispute does end up going to trial. So be sure to contact a business litigation attorney to help you resolve any disputes that come up in your business regardless of the method of dispute resolution that you choose.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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