In today’s America – the need to file or defend a lawsuit comes with the territory for business owners. Unfair but true.
Whether you need to file a claim against a deadbeat customer, employee, competitor, or whatever creeps in the dark halls of the courthouse – justice will cost plenty!
Filing a lawsuit involves legal fees, court filing expenses, and an expensive battle plan which can result in huge costs. The main factor driving up the costs is the legal system which unfortunately is often slow and inefficient. A typical lawsuit can last a year or longer before being resolved and involves expensive pre-court procedures such as depositions, document production, and court appearances before the matter even gets to trial.
Arbitration is the use of a private judge to avoid the court system and is perfectly legal and available to business owners. Federal and state laws require parties to a contract to go to arbitration if the proper language is in the agreement. The good news about arbitration is that it can usually be completed for a fraction of the cost of a traditional lawsuit and on an accelerated timeline.
Before deciding on this option, seek the advice of an experienced business attorney.
Bottom Line: Arbitration is a cost-effective alternative to the traditional court system. Seriously consider requiring this remedy in your business contract.