In the event that you find yourself dealing with a legal fight, it is essential to be aware of all of your alternatives. The owner of a business in the State of California normally balances several different business connections on a routine basis. Due to the nature of owning your own business, it is very possible that a legal conflict will, at some time, rear its ugly head.
Litigation can expose your company to undue pressure, be an enormous time sink, and cost you a substantial amount of money for things like legal expenses. Alternative conflict resolutions, such as arbitration and mediation, are methods that could enable you and your opponent to come to a resolution that you can both deal with while at the same time bypassing the abundant issues that litigation generally causes.
Mediation is a method where an impartial third-party, known as the mediator, who is usually a licensed attorney or retired judge, advises the individuals as well as their attorneys to work out the terms of an agreement. The process is often conducted directly by the courts in an effort to encourage an agreement and free up time on its litigation schedule.
The purpose of mediation is to come to an understanding that both people will be able to live with, even in the event that neither party gets precisely what they were trying to get. One of the advantages of mediation, instead of getting a judge to make a decision, is that the people involved have more say over the terms of the settlement and will not be pressured into taking an offer that they do not want.
Litigation is when someone files a legal claim and handles the matter via the traditional court system. After filing the claim and examining the evidence, both sides of the dispute will then go to trial where a jury or a judge will hear the debate and evidence given by each side and evaluate the strength of those arguments and that evidence. The jury or judge will then come to a conclusion, which could possibly leave the plaintiff with all, none, or some of the demanded monetary assistance.
A trial is precarious for both the defendant and the plaintiff. The plaintiff may eventually come away with an unfavorable ruling at the trial while still acquiring massive litigation costs.
After you have paid your attorney fees, filing fees, and additional court expenses, the cost of litigation can be extraordinary. As for the defendant, he or she could possibly lose at trial and end up being required to pay the total sum of money demanded by the plaintiff, along with her or his own attorneys’ expenses and fees.
Arbitration is comparable to litigation, in that the individuals will give their reasons and proof to the arbitrator, who is tasked with making a decision concerning the case. It is up to the individuals whether or not they wish to make the arbitrator’s conclusions binding, which means that regardless of the conclusions the arbitrator comes to, both individuals will have to deal with it; or non-binding, which means that the individuals may disregard what the arbitrator rules on if they are dissatisfied with it. The advantage of this method is that you will have the benefit of what is basically a private judge who is capable of handling your case quicker, which will save you money.
The reputable, licensed corporate attorneys at the Leiva Law Firm can assist company owners in deciding which method would be the optimal one for them, whether that is litigation, arbitration, or mediation. Schedule a free, no-obligation consultation today by contacting us at (818) 703-1777 as soon as possible. Our attorneys speak both English and Spanish.