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Business alternative dispute resolution has few disadvantages

On Behalf of | May 18, 2021 | Mediation & Arbitration

Recently, in our legal blog, we discussed the many valuable benefits of alternative dispute resolution (ADR). We talked about how mediating or arbitrating civil business disputes can save you money, time and grief. Unfortunately, not all legal solutions work in all situations.

Although avoiding litigation is nearly always beneficial, business owners in San Diego, California, should investigate all possible outcomes when using ADR. An effective way to determine if ADR might work in your civil dispute is to take your story to a reputable law firm for review. When an attorney gets a detailed view of your circumstances, he or she can make proper recommendations on your behalf.

What disadvantages are associated with ADR?

Arbitration and mediation involving business disputes have few disadvantages. However, as we mentioned above, ADR might not be the best approach in all cases. To help you decide how best to move forward, see the possible disadvantages of ADR in the section below.

  • Arbitration in our state is typically binding, which means you lose many protections, such as presenting evidence to a court and having your case examined for errors.
  • If your ADR efforts fail, you may have to spend additional money on a lawsuit along with money already spent on ADR.
  • You run the risk of the state’s litigation statute of limitations expiring while still seeking a remedy through ADR.

As you can see, the disadvantages of arbitration and mediation for civil business disputes are few. However, you will get the best outcome in your circumstances by having a legal professional examine your case. In the meantime, we invite you to continue reviewing our website content to learn more about ADR in California.