When New York business owners have a disagreement with a business partner, a vendor or an employee, they may think that they must litigate the issue. However, there is an alternative process that may allow the parties to resolve their concerns outside of court.
Common business disputes
There are several common disputes that can arise. These include breach of contract, disagreements between partners , employment disputes and debt collection.
Breach of contract occurs when one party to the transaction does not meet their obligations. An example of this is not delivering goods or performing services that the party agreed to provide.
Also, business partners may have disagreements about how to divide profits or who can make decisions about the day-to-day operations.
Employees may accuse the business owner of wrongful termination, non-payment of wages, and breach of the employment agreement.
If the business is not paid for work it has completed, either from customers, vendors or suppliers, it may pursue debt collection which can also result in disputes. All of these situations require resolution.
Alternative dispute resolution
Rather than going to court to resolve the issue, there is an out-of-court process called alternative dispute resolution (ADR). ADR is a voluntary process and sometimes, is less formal than a traditional legal process.
With ADR, the parties retain more control over decision-making and the outcome. ADR may also help the parties resolve their dispute faster and with less cost, depending on the complexity of the issue.
ADR is often also private and confidential, which may appeal to business owners who want to prevent their disputes from becoming public.