Handling a dispute with a business partner, vendor, or large corporation is a hassle most of us certainly do not want or need. Life is already usually very busy with home and family, work projects, managing finances, and trying to fit in some much-needed relaxation here and there too.

Many Contracts Include Dispute Resolution Clauses

Today, many contracts offer dispute resolution clauses, spelling out exactly what will happen when one party has a major problem with the other. If you created a contract with a dispute resolution clause, hopefully that portion was carefully considered in terms of what would work in your best interest should a legal problem arise. That may not be the case if you signed one created by another entity, even if it is an outlined plan for alternative dispute resolution.

Alternative Methods of Resolution Can Be Very Effective

Arbitration and mediation have become very popular in the past decade, with cases being decided in alternative forums more often. While litigation is perceived as dragging on and on, being difficult to schedule or reschedule, as well as sometimes being extremely expensive, both arbitration and mediation are perceived as less intimidating in both atmosphere and process. Scheduling is generally more streamlined and flexible, resolution is often reached much more expediently, and the costs can be exponentially less.

Large Corporations May Take Advantage of Consumers with Forced Arbitration

In the case of a business dispute between two parties who are on somewhat equal footing, alternative dispute resolution may work very well. For the average consumer who has found themselves in a legal dispute with a major corporation, however, the process may not work as well as expected. Forced consumer arbitration is becoming more common, often working in the best interests of corporations. Cell phone and credit-card companies, auto lenders, and more often benefit from alternative dispute resolution methods as they avoid court and manipulate the system in their favor.

Many Consumers Are Unaware of the Dispute Resolution Clause

When the consumer signs a contract including arbitration as the desired form of dispute resolution, they agree to leave the power of the court behind. This may turn out to be a bad decision later, but generally they are unaware of the circumstances, or had little choice in the terms. While litigation may be portrayed as more expensive and dragging out longer, larger companies certainly have the advantage in arbitration where consumers may have to pay enormous fees, pay to travel to the arbitration location, and may be at the mercy of an arbiter paid by the corporation. Arbitration also prevents class-action suits, meaning that enormous numbers of consumers lose out on compensation they may have been due.

Mediation Allows for Little Discovery & No Jury or Appeal

Mediation is usually agreed on by both parties. Most enjoy the fact that they are not in the courtroom and the entire setting is more casual. This can work against the consumer though who may find that some of the so-called benefits work against them in that there is generally little to no discovery process and no chance for a jury. There is also no transcription of the process so it cannot be reviewed by text later. Most decisions are considered final, with no chance for appeal.

Contact Us for Help

Handling any type of dispute is usually stressful, and arbitration, mediation, and litigation all have their drawbacks. If you are currently concerned about a consumer or business issue, consult with an experienced attorney like Shane Coons, who is also experienced in judicial reference. Let us review your case and assist you in finding the quickest resolution possible. Please call 949-333-0900 or email us at Shane.Coons@seclawoffices.com.