Regardless of how hard you work to avoid disputes involving your business, there is still a possibility that you could have a disagreement with a vendor, customer, or employee. When this occurs, you can settle the matter in court. Unfortunately, fighting an issue out in court can sometimes prove to be costly. It is because of this that many business owners are turning to collaborative law to settle disputes. If you are looking for ways to handle a business-related dispute, here is what you need to know about collaborative law.
What Is Collaborative Law?
In collaborative law, all parties involved agree to attempt to work towards a resolution without going to court. This requires a good-faith effort from each party to be successful. The voluntary negotiations could require several meetings before a compromise is reached.
During meetings, both parties are obligated not to use mistakes from the other party against them. The idea is to keep the conversation going until a resolution is reached.
Business lawyers can offer advice regarding the fairness of settlements offered. A lawyer can even attend the negotiations. However, the final decision regarding the settlement is reached by the parties involved, not their lawyers.
Why Should You Use Collaborative Law?
Collaborative law has several benefits. One of the biggest advantages is that both parties can save money on court costs and other related fees. Many aspects of the lawsuit process, such as paying for discovery, are skipped.
Collaborative law gives both parties an equal voice. Instead of having a judge review the information presented to him or her to make a decision, both parties work together to reach a settlement.
If you are interested in retaining your relationship with the other party, collaborative law can help. In court, the back and forth between parties can make it difficult to maintain a relationship. However, since both parties are working together and communicating along the way, there is a better chance of still having a relationship.
Is There a Drawback to Collaborative Law?
Collaborative law can be beneficial, but there is a drawback to consider. If both parties are unable to reach an agreement, both parties will have spent a significant amount of time on a process that did not result in a settlement.
It is important to note that if both parties are committed to being honest and working in good faith to reach a settlement, it is unlikely that time will be wasted on the process.
Consult with a law firm such as The Law Office of Vernon Nelson to learn more about collaborative law and how it can work for your business.
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