Disagreements are as inevitable in business situations as they are in any situation in which people are involved. Most business conflicts can be handled privately between the parties involved. Some require more serious measures. When a severe business dispute arises, there are generally two options that lead toward a successful resolution: arbitration or litigation. Both of these formal procedures require the assistance of an experienced business lawyer.

Arbitration Versus Litigation in Business Law

Although arbitration and litigation have the same goal—to resolve the business dispute—they are very different processes. While arbitration is an informal, private process, usually overseen by a retired judge or an attorney, it is mandatory to have a firm grasp of applicable law and to persuasively apply the facts to obtain a good result. Litigation, on the other hand, is more formal (in a Courtroom) and requires more technical litigation skills (objections, cross-examination, expert witness examination, etc.) to achieve a good result.

In both arbitration and litigation, a third party is designated to make the final decisions regarding the outcome of the business dispute at hand. In arbitration, this is an appointed individual who has no personal interest in the dispute. In litigation, this person is a judge or a jury.

Arbitration is sometimes a more efficient and faster process that litigation. While costs can still be significant, Arbitration is somewhat streamlined. Litigation, on the other hand, usually takes many months, or even years, and usually involves more procedure (filing motions, amended pleadings, written discovery, depositions, hiring of expert witnesses, ect.). Consequently, litigation can become very expensive and must be taken into your analysis when making legal decisions. Our attorneys understand both the cost and your desired result, and pride themselves on being honest about cost and seeking to achieve your desired result with you spending as little money as possible under the circumstances.

Arbitration Clauses

Business litigation is a complex and difficult process, and in most situations, it’s considered a last resort effort to resolve business disputes. Many people in the corporate world are so adverse to the idea of litigation that they include mandatory arbitration clauses in their initial business agreements. These clauses dictate that any business dispute that arises will be settled through arbitration and kept out of the court system.

Why Consult With A Business Lawyer for Arbitration/Litigation?

While it’s imperative that you have a good business attorney on your side when facing litigation, it’s wise to consult with one when going through arbitration as well. The experienced legal staff at Ensberg Law Group has worked with thousands of clients throughout Southern California during both the arbitration and litigation processes. It would be our pleasure to assist you with your important business matters as well.
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