Relationships inside the boardroom are not unlike those encountered in everyday life. Petty squabbles and hurt feelings can occur in business just as they do in a friendship or in marriage. Unlike personal relationships, however, commercial disputes between vendor and supplier or hostility between board members can sink deals and jeopardize long-term fiscal growth. When business entities are at an impasse and litigation seems likely, the alternative dispute resolution (ADR) can prove beneficial, Philadelphia business transactions lawyers say.
Alternative dispute resolution in a business context traces its roots to family law, where couples found success navigating the emotional minefield of divorce by resolving – collectively – to stay out of the courtroom. The same principles apply in commercial disputes. Just as divorcing spouses must find a way to move forward and effectively co-parent for the sake of their children, partners, board members and former clients often must continue to coexist for the sake of their respective businesses.
When parties agree to pursue alternative dispute resolution to resolve their business dispute, they must first retain lawyers trained in the alternative dispute resolution approach. Although counsel may be present at most meetings their role is largely supervisory. Allowing negotiations to be primarily conducted by the parties themselves helps ensure a settlement that all sides find satisfactory.
There are yet other advantages to alternative dispute resolution. Because parties are not pressured to assemble a team of lawyers nor pay court costs, ADR is a more economical approach to dispute resolution than litigation. Arbitration also presents a cost-savings over litigation, but the uncertainty of an arbitrator’s ultimate award may be untenable to some parties. Successful mediation, likewise, is dependent upon the skill and fairness of a mutually-agreed upon mediator.
Alternative dispute resolution, by contrast, offers participants greater control over the outcome – at less cost. Keeping a dispute out of the courtroom also helps ensure privacy, which can often be an issue when ownership of trade secrets or other confidential business information must be decided. ADR also helps repair and restore business relationships previously believed to be irreparably damaged, as parties work together to resolve their differences.
Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. can Handle all Your Alternative Dispute Resolution Needs
Commercial disputes are common in the business world but often can be resolved without litigation. Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. are well-versed in alternative dispute resolution. Call 215-574-0600 or contact us online to learn more about how we can help your business move forward. At our Philadelphia offices, we proudly serve corporate clients throughout the surrounding areas.