Business disputes that go to trial are lengthy and expensive. This makes alternative dispute resolution a way for your company to save time and money.
The state does not require two parties to use ARD to avoid a court case. However, New Jersey has the Alternative Procedure for Dispute Resolution Act to guide those looking to avoid going to civil trials. If you wish to negotiate an out-of-court settlement for your issue, you stand to gain the following benefits.
1. Lower costs
For a majority of cases, negotiating a resolution before going to court saves both parties a lot of money, The discovery process for trial often leads to excessive attorney fees, court reporter fees, the costs for printing or mailing documents and much more.
2. Faster resolution
Working towards a resolution without involving a judge, a jury, witnesses and other parties offers a chance for a faster resolution. This means less time away from work and keeping your business entities running. Companies often receive arbitration or settlement awards more quickly when not waiting on a judge or jury verdict.
3. Protected privacy
With a court case, your business and the whole situation become public knowledge. Depending on the situation, you may wish to protect your business reputation and the lives or interests of your employees. Negotiation between two parties and their legal representatives is private. The public has no access to the settlement or agreement outcome.
There are some parties who are unable to come to an agreement and must rely on the court to settle disputes concerning contracts, payment terms or other business dealings. However, an out-of-court settlement is ideal and often benefits both parties.
