Equine Law Blog

Not All Legal Disputes Warrant a Lawsuit

Is every legal dispute appropriate for a lawsuit? Not necessarily. Sometimes the dispute can be resolved quickly and amicably – as long as the parties are willing to consider an alternative to the legal system such as arbitration or mediation.

Arbitration

In an arbitration, the parties agree to have up to three neutral persons, such as a lawyer, retired judge, or company that provides alternative dispute resolution services, listen to both sides of a case, hear key witnesses, examine important documents, and then render a decision. Arbitration is not suitable for every type of legal dispute, however. Some disputes are best resolved through the court system, such as disputes involving the payment of money, foreclosing on stablemen's liens, disputes over who can retain possession of a horse involved in a transaction, and others.

Mediation

Mediation is a process in which the parties to a dispute agree to allow one or more unbiased persons to serve as a facilitator to help resolve it. Mediation differs from the traditional court system and arbitration; in those settings, a winner or loser emerges. However, the job of a mediator is to encourage both sides to resolve their dispute.

Mediations are usually conducted in an informal, comfortable setting. The parties attempt to work together toward a compromise that is acceptable to all. Mediation is especially useful for parties to a dispute who, based on where they live or their line of business, will need to work or do business together in the future. If a mediation is successful, the parties will leave with a freshly-written agreement in hand that resolves the dispute. After an unsuccessful mediation, the parties are free to pursue the matter through the court system (or, sometimes, arbitration).

Preserve Your Options

Once parties have become embroiled in a legal dispute, it is difficult for them to agree on anything, much less agree on an alternative to the legal system. A carefully worded clause within a contract can preserve, in an appropriate manner, the option to resolve a dispute arbitration or mediation.

Categories: Contracts, Sales/Disputes