What West Palm Beach Business Owners Should Know About Arbitration
If you have had experience with a legal matter such as divorce, you may be familiar with the term mediation. Mediation is a process where a mediator helps parties resolve issues and reach an agreement. Another form of dispute resolution is Arbitration. Arbitration is similar to mediation, but the arbitration process is the pathway to settling disputes in an effort to prevent going to court. While both options are a form of alternative dispute resolution (ADR), arbitration requires more skill, as it’s similar to a court hearing. Arbitration is a common occurrence in business disputes. Today, our West Palm Beach business law attorneys will provide some information business owners should know about arbitration.
Use Arbitration Clauses in Your Contracts
Disputes and other unfortunate events are bound to arise in business. As a business owner, you should always be one step ahead. Instead of going through the litigation process which can be lengthy and very expensive, businesses can use arbitration as an alternative to resolve disputes.
For this reason, an arbitration provision should be included in business agreements. The provision allows parties to resolve issues through arbitration rather than through the courts.
Florida law, by way of Florida Statute Section 44.104, provides authority as to voluntary binding arbitration. The law states that parties involved in a dispute may agree in writing to participate in voluntary binding arbitration.
There are Different Types of Arbitration in Florida
There are several types of arbitration that a West Palm Beach business owner should be aware of. The types of arbitration include:
- Voluntary Mediation
- Mandatory or Court Ordered Mediation
Understanding the different types of arbitration can be difficult. This is why it is important for business owners to consult business law and corporate law attorneys when conflicts occur, whether shareholder and partner disputes or contract disputes among vendors, subcontractors, and clients.
You Select the Arbitrator
With arbitration, you have the ability to select the arbitrator – a neutral third party – to handle the dispute. You should select someone who is knowledgeable in the specific area of law pertaining you your specific dispute.
Arbitration comes with several benefits that is beneficial to all parties. One of the primary benefits of arbitration is actually reaching the end goal – resolving the dispute and reaching closure. Additional benefits include the following:
- Arbitration is a faster process than litigation
- Arbitration costs less
- Arbitration does not create a public record
The decision of whether or not to arbitrate is up to you as the business owner. While each event is unique, arbitration offers advantages that your business can benefit from, rather than spending lots of time and money in and out of court.
Are You a Business Owner Dealing with Business a Business Dispute? Contact Kelly, Fulton & Kaplan, West Palm Beach Business & Corporate Law Attorneys.
When you find yourself in the middle of a business dispute, contact the West Palm Beach business and corporate law attorneys at Kelley Fulton Kaplan & Eller. We will work closely with you and use our expertise to help you discover whether arbitration or litigation is best for you and your business. Protect your business assets and contact us today for a consultation at 561-264-6850.