Few things can be more costly or time-consuming than a business dispute. Business owners in Hawaii are often eager to conclude disputes as quickly as possible to limit any impact on daily operations, but they are often unsure of the best way to go about doing so. Although every dispute is different, arbitration is typically an effective alternative to traditional litigation.
What is arbitration?
Arbitration is a type of alternative dispute resolution, or ADR. During arbitration, disputing parties work with a neutral third party — an arbitrator — to reach a decision. In many cases, the parties select the arbitrator. One of the benefits of arbitration is that arbitrators often hold more experience regarding the subject of the dispute than judges. Compared with traditional litigation in a courtroom, arbitration is also considered:
- Less expensive
- More flexible
What about compulsory arbitration?
In some situations, certain parties might be required to address their disputes through arbitration. Compulsory arbitration is often included in employee contracts. Since businesses are sometimes just as likely to find themselves in disputes with workers as they are with other businesses, compulsory arbitration can be a powerful tool for business owners.
There are many benefits to arbitration, and most business owners in Hawaii could probably benefit from looking further into the process. However, no two business disputes are alike, so it is important to carefully consider the situation before proceeding with any type of litigation. Those who are unsure of how best to proceed may even want to speak with an experienced attorney about the situation.