Equine Law Blog

Consider Addressing Alternative Ways to Resolve Disputes

The right contract language can help avoid disputes or reduce your expense if a dispute should arise.  Details can separate marginal contracts from effective ones. Details can also help prevent legal disputes.  One detail to consider is alternative ways to resolve disputes.

Resolving legal disputes through the court system can be time-consuming and costly.  Alternative methods of resolving disputes, whether through arbitration or mediation, have become popular because they are generally considered quicker and cheaper than the court system.  Once parties have become embroiled in a legal dispute, it is usually too late to find them agreeing on anything – much less agreeing to settle their differences through arbitration or mediation.  Contracts, however, can plan ahead to protect the right to resolve certain matters through these methods.

Arbitration

With arbitration, the parties agree to have one or more arbitrators listen to both sides of a case, hear key witnesses, examine important documents, and then render a decision. The parties to the dispute must agree from the start that the arbitrator’s decision shall be binding.

Mediation

Mediation is a process in which the parties to a dispute agree to allow one or more unbiased persons to help resolve it.  Mediation differs from the traditional court system and the arbitration process.  In those settings, a winner or loser emerges.  The job of a mediator, however, is to encourage both sides to resolve their disputes.

Arbitration and mediation are not suitable for every legal dispute.  Some are best handled through the court system, such as issues involving eviction in a landlord-tenant matter or stablemen’s lien issues.  Because of this, think carefully before agreeing to handle all disputes through these alternatives.

Discuss these and other provisions of contracts with a knowledgeable lawyer.

Categories: Contracts, Sales/Disputes