Best Ways to Settle Commercial Law Disputes January 20, 2023

Commercial law disputes can happen in all types of businesses. It is almost always inevitable that you may face legal problems when establishing your business, so it helps to have access to legal services . You may have issues with your partners, suppliers, customers, and shareholders that need resolution. Commercial disputes are never ideal, but there are several ways to minimise conflict and resolve issues without taking the matter to court.

Most common types of disputes within a business

Commercial disputes often involve breaches of contracts that lead to conflict among business partners. Situations may involve:

• A partner not meeting expectations
• Disagreements about fair division of assets or profit
• Misuse of funds or assets
• Breach of warranties
• Employee issues 

Ways to resolve business conflict

The good news is you can resolve business conflicts outside of court. Court proceedings and paying for legal services are costly for parties involved. Plus, proceedings can often take more time and cost more than other settlement options.

A settlement outside the court can often be the best option when handling a business dispute. Here are some options to consider if you want to settle outside of court:

Negotiation strategy

The first approach is through direct negotiation among parties. It involves a face-to-face discussion where a business chooses a person to represent them in a negotiation. The independent person must remain calm and professional. Lawyers can also represent the parties in reaching an agreement within a direct negotiation. Most businesses choose direct negotiation as it is the quickest and most costs effective way to resolve issues.

Mediation

If negotiation proves unsuccessful, a slightly more formal approach is mediation. In mediation, a neutral third party works with the parties and provides them options to help them reach a resolution. The success of the process relies on the willingness of both parties to accept the proposed settlement.

Arbitration

Arbitration is another option that businesses lean towards because it’s a quick and more cost effective process. Parties will select a neutral arbitrator or a panel of arbitrators to hear each side of the case, decide, and bring the dispute to a close. However, it is crucial to seek the advice of business lawyers regarding the choice of arbitrators, as an arbitration decision is usually final and binding on the partners.

When is litigation necessary?

If the options mentioned above have failed and parties aren’t interested in arbitration, they can choose litigation to pursue a legal remedy. Litigation happens when one of the parties issues proceedings, and the case goes to court.

In litigation, lawyers represent their respective parties in court. Keep in mind that litigation is time-consuming and expensive. However, an experienced lawyer will advise and represent you to determine a strategy to achieve the most favourable resolution.

Let marshall+dent+wilmoth handle your business disputes

Commercial law disputes are always challenging and can affect your business reputation. With that in mind, you need a reliable legal team to help you navigate legal issues and disputes practically and cost-effectively.

At marshall+dent+wilmoth, we employ a team of corporate and commercial lawyers in Melbourne and Victoria to help you tackle business challenges and resolve business conflicts. If you need legal services and expert legal advice, contact us today.