When you are involved in a business dispute, it can be difficult to know where to start in order to resolve the situation as quickly and effectively as possible. If your business has lost money because of a breach of contract or another type of business dispute, it is important to learn more about your options for seeking damages and resolving the dispute. Depending upon the circumstances you are in, you may be wondering about the differences between arbitration and litigation, and whether one is preferable to the other. Our Santa Fe business litigation lawyers can provide you with information about arbitration and litigation to help you learn more about these options.
Public Versus Private Proceedings
If you have the ability to choose between arbitration and litigation, you should know that one type of proceeding is private and the other is public. Although arbitration has many things in common with litigation, the proceeding is private. Accordingly, if there is any private information about your business that you do not want to be part of a public record, arbitration may be a better option for you. Litigation occurs in a courtroom and is public.
Different Rules for Evidence
Arbitration and litigation also follow different rules or procedures for admitting evidence. In business litigation, the rules of evidence for the jurisdiction will apply. In arbitration, typically, the evidentiary process is much more limited, according to an article in The Balance.
Arbitration Tends to Occur More Quickly and to Cost Less Money
Generally speaking, as a form of alternative dispute resolution (ADR), arbitration tends to cost less than litigation, and it also tends to be a speedier process. With arbitration, you do not need to wait for a court date to be set. Instead, with arbitration, the process can move forward once an arbitrator has been selected and the parties are prepared to go to arbitration.
Binding Outcome Versus Possibility of Appeal
Arbitration outcomes are usually binding and cannot be appealed, while you may be able to appeal the outcome of a court case that has gone through the business litigation process.
Arbitration May be Necessary if You Have an Arbitration Clause in Your Contract
In some cases, arbitration may be your only option for resolving a dispute if you are dealing with a breach of contract case in which the contract you have with the non-performing party includes an arbitration clause or provision. While some jurisdictions do not enforce binding arbitration clauses, New Mexico courts will enforce binding arbitration agreements as long as they are not unfairly one-sided. In a recent New Mexico Supreme Court case, the court found that a binding arbitration agreement was unenforceable because it was too one-sided. However, in situations where there is a mandatory arbitration agreement that is not unfairly one-sided, the dispute will need to be resolved through arbitration.
Contact a New Mexico Business Litigation Lawyer
Do you have questions about resolving a business dispute through arbitration or litigation? Our Santa Fe business litigation attorneys can evaluate your case for you today. Contact Slate Stern Law to learn more about how we can assist you.