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How to resolve business disputes in California

On Behalf of | Aug 1, 2022 | Business Litigation

As long as more than one person is involved in something as sensitive as a business arrangement, disagreements are bound to occur. Of course, there are ways to prevent them from becoming a problem. But, if your disputes have already spiraled into something that might affect your company’s health in California, it’s vital to take prompt measures to avoid irreparable damage.

Causes of business disputes in California

Contracts are an integral part of any business or professional relationship in California. They outline the expectations, terms, and conditions of the parties involved in the agreement. Unfortunately, not all contracts are airtight. And even when they are, people can still have different interpretations of them. So, this is where most business disputes in California originate.

Also, shareholders or business partners can fail to see eye to eye on the direction the company should take. For example, one may want to sell the business while the other wants to continue running it. This can lead to many heated arguments and eventually result in a business dispute.

How to resolve business disputes in California

The first step is always going to be trying to resolve the issue between yourselves. If you have shareholders or partners, sit down with them and try to hash things out. However, if this isn’t possible, there are other avenues you can take.

For example, mediation is often used to resolve business disputes in California. This is where both parties involved in the dispute meet with a mediator, who is a neutral third party that’ll guide you towards an amicable solution that works for everyone. Another option is arbitration. This is similar to mediation in that both parties involved in the dispute meet with an arbitrator. However, the arbitrator’s job is not to find a resolution but rather to hear both sides of the story and make a ruling.

If all else fails, you can always take legal action against the other party. This is usually a last resort but can be necessary if the other party is not cooperating or if you feel like your company’s best interests are being threatened.

It’s always a good idea to explore faster and more affordable methods to deal with business disputes like mediation and arbitration. But, litigation could be the better option if they don’t bring you the kind of resolution you were looking for.