When a conflict arises, it may be difficult to decide the best course of action to resolve it. While some individuals will immediately think to bring their issue through the court system and get a judge’s ruling, there are three other ways to resolve a conflict before going to court.
The three methods for conflict resolution are: Negotiation, Mediation and Arbitration.
Negotiation
Negotiation is a conflict resolution method where both parties involved in a conflict discuss the dispute amongst themselves and are able to come to an agreement. The settlement that is chosen must be agreed upon by both parties.
In the negotiation process, decisions are reached through discussion made between either the parties themselves or their representatives, however there is often no third party involved in the negotiation.
Negotiations offer flexibility and control as solutions can be tailored to each individual’s or companies needs and there is no interference from a third-party. Since there is no requirement for outsourced support, negotiations are often considered one of the most cost-efficient methods for conflict resolution. The only limitation in this process would be the willingness of each party involved.
It is recommended you consult a lawyer before conducting a negotiation to ensure that you are aware of your rights in the specific scenario.
Mediation
If two parties are unable to agree upon a decision, the next escalation to resolving a conflict is mediation. In this process, the conflicting parties are often no longer speaking to each other, so a neutral third party is required to assist in finding a solution. This third party is called a mediator and their main responsibility is to facilitate communication between both parties. Conversations between the mediator and each party take place in private. A mediator is not permitted to offer legal advice or counsel and while they are there to help find a resolution, they do not have the authority to impose a binding solution.
Once the mediation process is complete, a Memorandum of Agreement (MOA) is drafted by the mediator. This document outlines the details of the solution and is meant to be written documentation of the agreement made between the parties.
Mediation offers flexibility and confidentiality as a benefit to go along with lower costs. While the costs can be higher than negotiation, mediation is still a much more cost effective way to resolve conflict compared to court. On the other hand, there is a lack of enforcement options when it comes to mediation and it requires some mutual agreement amongst both parties.
It is recommended you have a lawyer review the MOA before signing to ensure that your rights and interests are protected.
Arbitration
Arbitration is the last escalation in conflict resolution before heading to court. In this method, a third party will make a decision, much like a judge would in a court case. The third party is presented a case by both parties and upon hearing each case, they conclude what awards will be presented to each party. While these awards are generally final and binding on all parties, they can also be filed in court and enforced as if they were a court’s judgment.
Arbitrations are often quicker and less formal than the court system while offering many legal benefits of a court hearing. The arbitrator will also most likely offer expertise in the field that is being disputed. However, some things to keep in mind is that there are higher costs associated with arbitration along with limited discovery. It may take a considerable amount of time before an arbitration decision is made and more often than not, there is also a requirement to pre-determine the arbitrator long before a conflict arises to ensure that the third party is neutral.
When attempting to resolve a conflict, there are a variety of methods to use but choosing the method that best suits the situation is important. Baker Newby offers a variety of services for dispute resolution in the Fraser Valley. Contact us today to book a consultation.
This blog is intended to provide readers with a broad overview of the legal topics provided. Readers are urged to consult with their lawyer before taking any specific action on the information contained in this blog.
