When you come up against a dispute in the industry, you may wonder what your options are. There are many different methods of handling disputes. Likewise, there are many different types of disputes you may go through.
What works for one situation may not work for all. This is why you need a toolbox with many dispute resolution options available to peruse if you get into a sticky situation.
Why avoid litigation?
FINRA looks at some alternative methods for solving your disputes. Note that litigation is still a perfectly viable option. In fact, in some cases, it might be your best option. But taking cases to court often costs a lot of money and eats up a big portion of your time. If you do not have the time or money to spare, looking into other options first may benefit you.
Arbitration and mediation
Your first option is arbitration. This is one step away from litigation. It costs less because you do not need a trial. An arbitrator acts in place of a judge, too. They listen to your arguments and make a decision based on the facts presented. This decision legally binds all parties and you must abide by it. If your dispute involves lots of assets, money or people, this option may benefit you most.
The second is mediation. This is better for people who already think they can work things out without much outside help. A mediator only provides feedback, insight and opinions. It is up to all parties to come to a decision on your own. Mediators may step in if arguments get out of hand and work to ensure everyone has their say.
If you wish to learn more about other dispute resolution methods, consider talking to a legal expert.
